Sector developments and company hires

STS BTL RMBS prepped
Domivest is in the market with the first-ever STS buy-to-let RMBS. Dubbed Domi 2021-1, the €352.2m transaction is backed by a €370.7m provisional pool of Dutch BTL mortgage loans, including €30.61m in prefunding.

Interest-only loans comprise 93.5% of the pool, according to Moody’s. Loans with initial LTVs above 70% amortise linearly to either the 70% LTV (representing 88.3% of the pool) or 60% LTV mark (11.7%).

Rabobank credit analysts suggest that the STS label is typically not sought for BTL RMBS because BTL loans are not eligible collateral under the LCR rules. However, they note that benefits of the label can be gained when additional requirements are met, which allow for preferential capital treatment of the notes for banks and insurers under CRR and Solvency 2. PCS has verified that Domi 2021-1 complies with its CRR assessment.

The full capital stack is being offered, ranging from €313m in triple-A paper down to unrated class X1 and X2 notes. Barclays, BNP Paribas and Macquarie are joint arrangers and lead managers on the deal.

In other news…

Agribusiness JV established
Brazilian alternative investment firm Vinci Partners Investments has established a joint venture with agribusiness investment firm Chrimata involving a new strategy, which will be co-managed by Vinci Partners’ real estate and credit teams (securitisation is one of the latter’s core strategies). The partnership already has a pipeline of 12 potential investments in the sector, representing over R$1bn in total transaction volume, and will provide competitive custom-made financial solutions for the agribusiness industry.

Lower mid-market fund formed
Family Legacy Capital Management has formed FLC Credit Partners, a private credit fund manager providing financing solutions to capital-constrained, lower middle market companies in North America. Headquartered in New York, the investment team is led by partners and mds Peter Eschmann, Matthew Hart and Jay Rogers, who have collectively completed over 250 transactions and deployed more than US$15bn of capital in their previous roles. The group targets US$10m-US$100m transactions to fund refinancings, LBOs, add-on acquisitions, recapitalisations, growth/working capital, rescue capital, DIP loans and exit finance.

Eschmann brings over 25 years of private credit experience, including 16 years at Cerberus Capital Management and earlier at Deutsche Bank, Chase Manhattan and Bankers Trust. Hart has over 20 years of private credit and restructuring experience, including as head of private and transitional finance at Jefferies and earlier at Lazard, Merrill Lynch, Intrepid Financial Partners and Eos Partners. Rogers has over 20 years of private credit experience, including seven years at Cerberus Capital Management and as chief credit officer at Catalyst Capital.

Also joining the team as vp is Brian Mullin, who has over 10 years of experience in capital raising and investor relations for investment funds, including at Neuberger Berman and Campbell & Company.

North America
Frost Brown Todd (FBT) has promoted three CMBS attorneys in its Louisville office. FBT has named Devon Callaghan, Colin Stouffer and Doug Walter members of the firm.

True lender repeal censured
In a letter to US Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell, the Structured Finance Association has expressed its opposition to Senate Joint Resolution 15, which would invalidate the true lender rule issued by the OCC last year (SCI passim). The association argues that Congress’ use of the Congressional Review Act (CRA) to nullify the rule will lead to “costly uncertainty” regarding the foundational aspects of the legal and regulatory framework financial services providers need to provide consumers and small businesses access to affordable credit.

“It is critical that the OCC provide clarity and transparency through rulemaking for loans originated by national banks. If the OCC’s authority on true lender is removed, appropriate safeguards within the true lender rule to prevent predatory practices will also be put at risk, as will the overall safety and soundness of the banking system,” the SFA notes.