Pelorus Capital Group Prices First-Ever Securitization Backed By Collateral in the Cannabis Sector
Company to Retain One-Third of $70M Offering, Selling $45M of Bonds; Securitization First in a Series and First Ever for the Cannabis Sector
NEWPORT BEACH, Calif., July 31, 2023 (GLOBE NEWSWIRE) — Pelorus Capital Group (“Pelorus” or “the Company”), the leading provider of commercial real estate loans for the cannabis sector, priced the first-ever securitization for cannabis-linked real estate assets.
Pelorus retained a third of the $70 million offering, selling $45 million of bonds (“PCG 2023-1”), which attracted a range of institutional investors and hedge funds who were drawn to the high yield and growth of the businesses. The one-tranche securitization is floating rate over one-month Secured Overnight Financing Rate (“SOFR”). Performance Trust served as the sole book runner for the offering, while Cadwalader, Wickersham & Taft LLP, represented the issuer.
Most industry insiders, lenders and investors believed securitization would never happen in the cannabis sector without a change in legislation. We couldn’t be prouder to prove them wrong.
Dan Leimel, CEO of Pelorus Capital Group and manager of the Pelorus Fund
This first-of-its-kind offering is a significant milestone in the progression of our business plan, which will provide Pelorus with advantageous economic and structural features, empowering the Company’s continued growth with or without legislative action.
“This is an exciting deal that demonstrates the continued acceptance of cannabis linked investments by institutional investors,” said Pelorus Capital Group Managing Partner Travis Goad. “This securitization highlights the confidence investors have in our business model, team and future as the leading privately held commercial real estate lender in cannabis. We expect to be back in the market later this year with additional securitization issuances and look forward to further demonstrating our proven ability to provide meaningful returns to institutional investors.”
About Pelorus Capital Group
Pelorus Capital Group (“Pelorus”), the leading provider of commercial real estate loans for the cannabis sector, and its Pelorus Fund, a private mortgage real estate investment trust (“mREIT”), are changing the commercial real estate lending landscape in the cannabis sector. Pelorus Fund offers a range of innovative transactional solutions to address the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge lending programs are the direct result of the firm’s involvement in more than 5,000 transactions of varying size and complexity. Since 1991, Pelorus’ principals quickly understand an opportunity, structure a logical solution, execute a timely close and have participated in more than $5B of real estate investment transactions using both debt and equity solutions. To date, Pelorus has completed 70+ commercial real-estate loan transactions and deployed more than $500+ million to cannabis businesses and real estate owners, comprising nearly 4,200,000 sq. ft. in eight states across the U.S. With the ability to fund approved construction draws for reimbursement with a single agreement covering the financing of the entire project, the Pelorus Fund helps to stabilize cash flow for its clients, so they are able to remain focused on their core business goals and objectives. For more information, visit https://pelorusequitygroup.com/.
