Company developments and sector hires

Aussie bank secures warehouse line

Yellow Brick Road (YBR), an Australian non-bank lender, has received final credit approval from an Australian Bank for it to provide an initial A$120m RMBS warehouse facility. The facility will be provided to the intended RMBS programme trust manager, sponsor and servicer, Resi Warehouse Funding (RWF), which is currently a wholly-owned subsidiary of YBR, but which is intended to be owned as a joint venture as 50% by YBR and 50% by an international alternative asset manager (JV Partner). RWF has accepted the detailed credit approved securitisation warehouse term sheet.

RAIT sale

RAIT Financial Trust has entered into an equity and asset purchase agreement to sell substantially all of its assets to an entity owned by a Fortress Investment Group affiliate under Section 363 of the US Bankruptcy Code. The REIT has also filed for chapter 11 relief to facilitate the sale process and will continue to operate as a debtor-in-possession under the jurisdiction of the bankruptcy court. The stalking horse purchase agreement provides RAIT with a binding bid of approximately US$174.4m, along with the assumption of certain liabilities, which is subject to better offers in a forthcoming bidding process to be overseen by the bankruptcy court. The move follows the conclusion of a strategic review of the company (SCI 23 February 2018).