News and Transactions
IMC Completes Sixth CMBS Transaction: Investors Again Recognize IMC Quality
March 6, 2015

TORONTO, March 6, 2015 /CNW/ – Institutional Mortgage Capital (“IMC”) announces the successful completion of its sixth Canadian CMBS issuance (Institutional Mortgage Securities Canada Inc., Series 2015-6, $325.4 million). With this transaction, IMC has now issued a total of $1.7 billion of new Canadian CMBS bonds since 2011.

IMC is the leading originator of Canadian CMBS and has a well-deserved reputation of bringing new issues to market that feature strong and uniform underwriting fundamentals across its entire mortgage pool.  The IMSCI 2015-6 transaction continues this practice with 100% of the mortgage pool being originated by IMC.


John Ho, President and CEO of IMC, commented:


“We are extremely pleased with the results of our 2015-6 transaction.  There was strong Canadian and U.S. investor interest for all classes, which was reflected in the pricing levels for the deal.  That said, current pricing spreads still do not recognize the quality of Canadian CMBS collateral, which has default rates and loss levels that continue to set new historical lows.  Canadian CMBS collateral continues its stellar credit performance with the lowest delinquency rates for any structured credit product in Canada, including credit card and other ABS.  The current “more spread for less risk” pricing levels and continuing spread compression will provide a real opportunity for investors in Canadian CMBS.”

The IMSCI 2015-6 transaction is the first Canadian conduit deal in 2015.  IMC expects at least 5 additional Canadian CMBS deals this year.  In 2014, 4 separate issuers (including IMC and new entrant RBC) brought CMBS transactions to market totaling more than $1.1 billion.  IMC expects these Canadian issuers to continue to grow their market share and to successfully challenge other Canadian credit products for investor capital.

IMC is unique in the CMBS industry.  As a major issuer of 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