IMC Completes Seventh CMBS Transaction: Continued interest from U.S. Investors

TORONTO, Nov. 10, 2016 /CNW/ - Institutional Mortgage Capital ("IMC") announces the successful completion of its seventh Canadian CMBS issuance (Institutional Mortgage Securities Canada Inc., Series 2016-7). With this transaction of approximately $352.4 million, IMC has now issued a total of $2.02 billion of new Canadian CMBS bonds since 2011.  This is the first multi-seller transaction for IMSCI with collateral contributions from multiple sellers including IMC, Royal Bank of Canada, and Trez Commercial Finance Limited Partnership.

The IMSCI 2016-7 transaction is the third Canadian CMBS deal this year to be marketed in both Canada and the United States.  It generated strong interest from U.S. based investors who acquired approximately 35% of the bonds.  The deal was supported by a syndicate comprising of seven dealers across Canada which was led by RBC Capital Markets (structuring lead), National Bank Financial, and TD Securities.

John Ho, President and CEO of IMC, commented:

"We continue to see strong interest in Canadian CMBS from our traditional investor base in Canada, and are particularly pleased with the continued interest shown by U.S. investors.  There was strong demand for our securities with several classes receiving orders up to four times the offered securities.  With the volatility experienced in global fixed income markets over the past 12 months, we are pleased that this transaction was well received by investors in both Canada and the United States.  IMC expects to bring at least one CMBS deal to market in 2017, and we would be surprised to see fewer than 3 or 4 other new Canadian issues next year."

IMC is unique in that they have invested in the first loss position (commonly called the "B-piece") in its own CMBS transactions since the start of its conduit program in 2011, years ahead of the U.S. risk retention rules that are expected to come into effect this December.  IMC believes strongly in the credit quality of the mortgages it originates and the performance of Canadian commercial mortgage loans. 

IMC was established in 2009 and operates as an exempt market dealer and investment fund manager with expertise in Canadian real estate debt and related securities.  It originates and services commercial mortgage loans in all Canadian provinces.

SOURCE Institutional Mortgage Capital Canada Inc.

Charles Gamm, 416-814-2585