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M360 Advisors Announces Close of a $100 Million Offering of Senior Unsecured Notes due 2023

·4 min read

Piper Sandler serves as placement agent for the offering

M360 Advisors, LLC ("M360 Advisors" or "M360"), a U.S.-based investment management company managing alternative investment vehicles, today announced the closing of a private placement of $100 million aggregate principal amount of 6.75% senior unsecured notes due 2023 (the "Notes") issued by MCREIF SubREIT, LLC (the "Issuer"), a private REIT managed by M360 Advisors, and fully and unconditionally guaranteed (the "Guaranty", and with the Notes, collectively, the "Securities") by M360 CRE Income Fund LP. The Notes have received an "A" rating from Egan-Jones Ratings Company.

Piper Sandler & Co. acted as placement agent for this offering. Alston & Bird LLP acted as legal counsel to the Issuer, and Morrison & Foerster LLP acted as legal counsel to the placement agent.

M360 intends to use the net proceeds from the offering - in combination with its existing credit facilities and a new $250 million credit facility from Credit Suisse - to fund new loan originations and for general corporate purposes.

"We are pleased to have closed this private placement with a strong "A" credit rating in this challenging environment. It is a testament to the strength of our loan portfolio, the experience of our team, and our disciplined process," said Evan Gentry, M360 Founder and CEO. "We see a substantial pipeline of attractive commercial real estate lending opportunities in the market and this financing adds to our ample liquidity to harness those opportunities and further scale our business."

"This transaction signifies confidence from the market that we will continue to successfully execute on our strategy and deliver attractive risk-adjusted returns," said Dan Vetter, M360 Co-Founder and Chief Investment Officer.

M360 Advisors manages over $900 million of commercial mortgage debt obligations, as of September 30, 2020.

The issuance of the Securities was not registered under the Securities Act of 1933, as amended (the "Securities Act"), and were offered and sold in reliance on an exemption from registration provided by Rule 506(c) of Regulation D and Section 4(a)(2) of the Securities Act. The Securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Securities or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Securities or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About M360 Advisors, LLC

M360 Advisors is a U.S.-based investment management company that manages alternative investment vehicles for institutional and accredited retail investors. M360 Advisors’ fund offerings are designed to provide a short-duration, high-yield, low-volatility alternative to traditional fixed income investments, while also providing significant collateral protection and reasonable liquidity. Fund offerings are designed for international tax efficiency and have attracted institutional investors throughout the world. M360 Advisors benefits from proprietary deal flow sourced by Money360, Inc., a wholly owned subsidiary of MCREIF SubREIT, LLC, a vertically-integrated direct lender that originates commercial real estate loans collateralized by office, industrial, multifamily, hospitality and retail property types.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the anticipated use of the net proceeds from the offering. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The Issuer can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Issuer’s expectations include, but are not limited to, the continued impact of the COVID-19 pandemic, which remains inherently uncertain as to duration and severity, and any additional governmental measures taken to limit its spread and other potential future outbreaks of infectious diseases or other health concerns; applicable regulatory changes; general volatility of the capital markets; changes in the Issuer’ investment objectives and business strategy; the availability of financing on acceptable terms or at all; the availability, terms and deployment of capital; the availability of suitable investment opportunities; changes in the interest rates or the general economy; increased rates of default and/or decreased recovery rates on investments; changes in interest rates, interest rate spreads, the yield curve or prepayment rates; changes in prepayments of Issuer’s assets; and the degree and nature of competition, including competition for the Issuer’s target assets. Such forward-looking statements speak only as of the date of this press release. The Issuer expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Issuer expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201106005545/en/


Erica Warfield
Prosek Partners
(323) 500-0922