Members of SNR Denton’s Capital Markets practice, along with Citi, worked collaboratively to pioneer an innovative financing structure that provided a $245 million revolving credit facility to Waypoint Homes and GI Partners. This innovation will help support the acquisition, renovation, long-term ownership and management of Waypoint’s growing national portfolio of single family rental (SFR) homes.
The multi-year, revolving credit facility is designed to be flexible for the borrower, with funds made available at increasing advance rates based upon the stage of the home as it progresses from acquisition, through completed renovation, through lease-up and occupancy. SNR Denton partner Bob McCarthy (Capital Markets, New York) led the SNR Denton deal team that also included counsel Shannon McSwain (Capital Markets, San Francisco) and Managing Associate Michelle Alves (Capital Markets, New York).
“The availability of debt financing is critical to the success of the emerging SFR business, yet no tested financial model existed for the industry. We congratulate Citi and Waypoint on breaking new ground with this pioneering approach to structuring the credit facility. Incorporating elements from both residential and commercial facilities, we worked closely with our client to create a collaborative deal structure that balanced the needs of all parties and may serve as a model for future such deals,” said McCarthy.
This deal showcases the strategic counsel and innovation of SNR Denton’s global Capital Markets practice, which has worked on major securitizations and other financings, especially in the residential and commercial real estate markets. The group’s world-class lawyers have become trusted counselors for clients navigating a changing capital markets sector. The Capital Markets practice is regularly called upon by banks, issuers, underwriters, servicers and major residential and commercial conduit purchasers to provide sophisticated legal counsel.
