Colony American Homesplans to issue
The securitization will be backed by rental income from a portion of the Scottsdale, Ariz.-based firm’s portfolio of single-family rental homes. CAH has hired advisors to help in structuring the transaction.
The single-family rental company formed in 2012 by Colony Capital also expanded the JPMorgan, Credit Suisse led credit facility to $1.2 billion. The credit facility first announced in September had been set at $500 million with an accordion feature that allowed for an increase in credit.
“Both of these events are major milestones in our company's continued growth,” said Justin Chang, CEO of CAH, in a press release. “Funds raised from the securitization, combined with our existing private equity capital and the expanded credit facility, will further our ability to actively acquire homes in our selected markets and allow us to maintain top quality management of those homes.”
CAH will use the proceeds to build scale in its portfolio of single-family homes across the U.S. Colony owns and manages over 15,000 homes for rent in Arizona, California, Colorado, Florida, Georgia, Nevada, and Texas. The company intends to originate as much as $2 billion in debt during its first year, with potential to do more, including loans of as much as $100 million.
CAH’s securitization announcement follows a similar announcement made by
