Roc Capital Holdings LLC [1] (Roc360) has announced the closing of its first round of syndicated revolving securitization of residential transitional loans.
Roc36, a digital platform for residential real estate and an originator of investor-level loans, acted as a sponsor through its wholly-owned subsidiaries (such as Haus Lending [2]) which underwrote, originated, and funded all of the initial mortgage loans in the transaction.
The Roc Mortgage Trust-2021-RTL1 securitization was structured with total offered notes of approximately $200.79 million across two classes of senior notes and one class of mezzanine notes. None of the offered notes will be rated by any rating agency such as Moody’s [3], Standard & Poor [4], or Fitch [5].
“The securitization represents interest in a pool of performing, fixed-rate, interest-only, first lien mortgage loans to real estate investors, with eligible collateral encompassing transitional one-to-four-family residential, multifamily and mixed-use properties,” said a press release [6] on the announcement. “The deal enjoyed strong demand and was oversubscribed with broad institutional participation, backed by strong origination capacity and the credit performance of the more than $4 billion in loans originated by Roc360 since 2014.”
Nomura Securities International, Inc. [7] acted as sole lead structuring agent of the transaction. Morgan Stanley & Co. LLC served as joint bookrunner and co-lead manager on the transaction.
“The securitization features a two-year revolving period during which principal collections on the underlying mortgage loans can be used to purchase additional loans and fund rehabilitation draws. Credit enhancement for the transaction includes subordination of the notes, overcollateralization and excess spread.”