Pelorus Capital Group announced it priced the first-ever securitization for cannabis-linked real estate assets.
Pelorus retained a third of the $70 million offering, selling $45 million of bonds (“PCG 2023-1”), which attracted a range of institutional investors and hedge funds. The one-tranche securitization is floating rate over one-month secured overnight financing rate. Performance Trust served as the sole book runner for the offering, while Cadwalader, Wickersham & Taft LLP, represented the issuer.
“Most industry insiders, lenders and investors believed securitization would never happen in the cannabis sector without a change in legislation,” stated Dan Leimel, CEO of Pelorus Capital Group and manager of the Pelorus Fund. “We couldn’t be prouder to prove them wrong. This first-of-its-kind offering is a significant milestone in the progression of our business plan, which will provide Pelorus with advantageous economic and structural features, empowering the company’s continued growth with or without legislative action.”
Pelorus Capital Group managing partner Travis Goad, stated: “This is an exciting deal that demonstrates the continued acceptance of cannabis linked investments by institutional investors,” “This securitization highlights the confidence investors have in our business model, team and future as the leading privately held commercial real estate lender in cannabis. We expect to be back in the market later this year with additional securitization issuances and look forward to further demonstrating our proven ability to provide meaningful returns to institutional investors.”
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