Stretch Loans Helping Buoy Stalled CMBS Market

Law360, New York (June 9, 2016, 5:00 PM EDT) -- As prerecession commercial mortgage-backed securities are coming due, many borrowers can’t refinance in one chunk and some are turning to so-called stretch loans that include multiple types of capital, but such loan structures, often put together by private equity firms, are tricky because they require cooperation between bank and mezzanine lenders.

Lawyers say combining mezzanine and bank debt allows borrowers to get to the high loan-to-value, or LTV, ratios they obtained before the downturn, and that doing so is beneficial to the mezzanine lenders, who can charge a premium interest rate on that portion of the loan.

“It’s partly because of...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!