News and Transactions
IMC Completes Fifth CMBS Transaction: Strong Interest From U.S. Investors
July 22, 2014

TORONTO, July 22, 2014 /CNW/ – Institutional Mortgage Capital (“IMC”) announces the successful completion of its fifth Canadian CMBS issuance (Institutional Mortgage Securities Canada Inc., Series 2014-5 $311.8 million). With this transaction, IMC has now issued a total of $1.339 billion of new Canadian CMBS bonds since 2011.

The IMSCI 2014-5 transaction is the third Canadian CMBS deal in the past 12 months to be marketed in both Canada and the United States and generated strong interest from U.S. investors who acquired more than 35% of the bonds.  In addition, almost 50% of the bonds were sold to new investors who had not previously purchased CMBS bonds off the IMSCI shelf.  The deal was supported by a strong syndicate comprising seven dealers across Canada and the U.S. and was jointly led by RBC Capital Markets (structuring lead), J.P. Morgan Securities and National Bank Financial.

John Ho, President and CEO of IMC, commented:

“We continue to see strong interest in Canadian CMBS from our traditional investor base in Canada, but are particularly pleased with the exceptional interest shown by U.S. investors and by new investors to IMSCI.  There was strong demand for our securities and every class in this transaction was over-subscribed, with several classes receiving orders for over 3 times the available securities.  We see spread compression in Canadian CMBS bonds continuing and expect our spreads to reach pre-2007 levels in 6 – 12 months.  IMC expects to bring at least one more CMBS deal to market in 2014, and we would be surprised to see fewer than 3 or 4 other new issues this year.”

IMC is unique in the CMBS industry.  As a major investor in Canadian CMBS bonds, IMC also invests in the first loss position (commonly called the “B-piece”) in its own CMBS transactions.  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.

For further information: Charles Gamm, 416-814-2585