Centerline Securitizes $2.8 Billion Affordable Housing Bond Portfolio
By Caitlin Jones & A. J. Johnson
1 min read
CENTERLINE HOLDING Company, parent company of Centerline Capital Group, has completed the securitization of a $2.8 billion portfolio of taxexempt affordable housing bonds with Freddie Mac.
In the deal, announced by the two firms 1/2/08 in a news release, Freddie Mac provided $2.8 billion in financing to Centerline for rental housing properties around the U.S. The $2.8 transaction involved 383 bonds secured by 275 low-income housing tax credit properties with roughly 52,000 occupied units in 31 states and the District of Columbia.
Securitization of Centerline’s bond portfolio was executed through Freddie Mac’s Tax-Exempt Bond Securitization product. In this execution, Freddie Mac issues senior and subordinate tax-exempt and taxable securities, with the senior securities guaranteed by Freddie Mac and supported by pools of tax-exempt and taxable multifamily housing revenue bonds.
Centerline retained a high-yield first-loss position, the B-piece, and will remain primary and special servicer of the portfolio.
Centerline used proceeds from the transaction to redeem its existing financing arrangements and repay the costs and expenses associated with the transaction.
