With the successful completion of a $195 million mortgage financing for Apollo Management L.P., Franchise Finance Corp of America is now preparing another commercial mortgage-backed securitization for the current quarter.
Stephen G. Schmitz, the specialty finance company's chief financial officer, said that he has not yet determined the exact size of the next deal, but it will include at least a portion of the Apollo-related asset stream.
The full amount may be divided between a couple of deals over the balance of the year, according to Schmitz, who noted the lender originates about $1 billion a year in new asset streams. The company said it had no further details of the upcoming sales available at this time.
The financing is provided to Clark Retail Enterprises Inc., a company formed by Apollo to purchase the petroleum and convenience store retail assets of Clark Refining & Marketing Inc. from Clark USA, Inc. According to FFCA, Apollo acquired 700 company-operated and 200 franchised Clark/On the Go units, of which 501 were the subject of FFCA mortgage financing.
The mortgages acquired cover both fixed- and variable-rate debt and have a 20-year term. - David Feldheim