IRVINE, California – (BUSINESS WIRE) – Commerce Home Mortgage, LLC (“Commerce”) – one of the largest community development financial institutions in America (“CDFI”) – today announced pricing and completion of a private placement (the “Offer”) for $ 31.5 million. USD known. Perpetual Preferred Equity Units (the “Preferred Equity Units”). The offering brings Commerce’s outstanding preferred equity units to $ 81.5 million. The investors in the Preferred Equity Units include 18 socially responsible banks looking to expand access to capital for low-income borrowers and communities in their market service areas.
The deal will use the net proceeds from the offering to increase lending to black, Latin American, low income, and underbanked borrowers and communities – including those in the Southwest, Midwest, and Southeast. Commerce expects lending to surpass $ 10 billion in 2021 to fuel the community’s mission to lend to the under-banks.
Rev. Everett Bell, Chairman of Commerce’s Community Advisory Board, stated, “We are honored that our platform continues to be an effective tool for socially responsible banks to improve access to capital for minority and low-income communities, often left behind by traditional financial institutions. This additional capital will further strengthen our mission to meet the needs of black, Latin American, low-income, and historically underserved communities across the country. We thank our new partners for participating in our commitment to greater social justice in many of the communities we serve. ”
Steven Sugarman, founder of The Capital Corps, LLC – the CDFI-certified venture fund that acquired Commerce in 2018, added, “We look forward to building our banking partnerships as we expand our lending across America. Commerce’s ability to work with custodians on terms consistent with our investment grade rating validates the hard work of our team, adds to the strength of our business and reinforces our critical mission. We look forward to further expanding our partnerships, services and reach in the new year. ”
The Preferred Equity Units, which are Investment Grade BBB + rated by Egan Jones, have a cumulative preferred yield of 5.00% per annum paid quarterly (subject to an annual adjustment based on the regulatory credit earned by bank investors for the development of the community).
Performance Trust Capital Partners acted as exclusive financial advisor to Commerce and sole placement agent in the offer. Michelman & Robinson, LLP acted as legal advisor to Commerce and Hunton Andrews Kurth LLP acted as legal advisor to Performance Trust on the offer.
About Commerce Home Mortgage, LLC
Founded in 1993, Commerce Home Mortgage is a national mortgage lending company certified by the US Treasury Department and the state of California as a community development financial institution.
For more information: http://www.commercehomemortgage.com/
About the Capital Corps, LLC
The Capital Corps is certified as a community development financial institution by the US Treasury Department and the State of California, and oversees its subsidiaries, including Commerce Home Mortgage.
For more information: http://www.thecapitalcorps.com/
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This press release does not constitute an offer to sell, solicitation of an offer to sell, or a solicitation of an offer to buy any securities. In no country in which such offer, solicitation or sale is prior to registration or qualification under securities laws such a court would be unlawful, there is a sale of securities.
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