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April 16, 2025
Cadwalader partner Jed Miller spoke with 9fin about Third Coast Bank's first-ever securitization – a $200 million revolving commercial real estate loan made to one of America's largest private investment firms focused on real estate development. The article, "Unique US Regional Bank Securitization Targets CRE Concentration," was published on April 15.
The transaction, in which EJF Capital securitized $100 million of Third Coast Bank's $200 million dollar loan, is the first public example of a securitization done on a single newly originated CRE loan of this size. The unique structure of this deal brought with it a lot of barriers and complexities. For example, it was difficult to find an investor able to take the time and effort to due diligence the portfolio.
Still, this novel approach opens up a lot of future opportunities. While one of the notable elements of this deal is that is took place on a newly originated, single loan, the parties involved say it could be replicated with existing loans.
“It is an interesting transaction,” said Jed. “This is another tool in the toolbox for regional banks to manage these different regulatory metrics and risk positions.”
Cadwalader acted as legal counsel to Third Coast Bank in the deal, which was announced on April 7. The Cadwalader team was led by Jed and partners Dan Meade and Gary Silverstein; special counsel Mike McCormack and associate Spencer Brachfeld.
Read the full article here (subscription required).
