Loan sale advisor DebtX is slated to hold a $57 million commercial loan sale on Nov. 16 for a regional bank located in the Midwest US, according to Kingsley Greenland, president, founder and CEO. The loan portfolio consists of 40 relationships, which refers to loans that are different, but with the same issuer. Commercial real estate loans comprise 60% of the portfolio, while the portfolio also contains commercial and industrial (C&I), hospitality, agricultural and residential development-related loans as well, Greenland said. All of the collateral is based in the Midwest US, he noted.
The average paid through date for the portfolio is May 15, 2004, while the weighted-average coupon is 6.56% and the weighted-average maturity is December 31, 2007, Greenland said.
"This is one of our larger deals of the year," he said, "It's the perfect example, [attesting to] the expanding marketplace of [commercial banks] able to buy and sell loans."
To be sure, the aforementioned $57 million loan sale is only a portion of DebtX's loan sale pipeline for the fourth quarter 2004. "We have $159 million bidding in November already," Greenland said, "We expect to do 40 [sales] in the fourth quarter."
This growing pipeline can be attributed, for the most part, to the growing amount of clients looking to engage in the process of portfolio management, Greenland said. In fact, the increase in portfolio management has not only been seen in the US. DebtX has been fostering liquidity through facilitating loan sales in Europe as well. This is because the company set up shop in its Germany-based office earlier this year (see BLR, 4/5/04). And results have already been apparent, one prime example being DebtX's rarely-if ever-seen Italian loan portfolio sale for 35 million just this past September, (BLR, 9/13) which is set to close shortly, Greenland said.
"We're all about active portfolio management," Greenland said.
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