Centerline Refinances Tax-Exempt Bond Portfolio with $2.8B Freddie Mac Securitization

By Keat Foong, Executive EditorNew York— Centerline Capital Group has refinanced its tax-exempt housing bond portfolio with Freddie Mac for $2.8 billion.  Centerline Holding Co., the parent company of Centerline Capital Group, announced that the securitization of the portfolio, which is secured by 275 multifamily low-income housing tax credit properties in 31 states and the District of Columbia, has been completed. Centerline says it is using the proceeds from the securitization to redeem its existing financing arrangements, retire corporate debt and repay the costs and expenses associated with the transaction.Centerline says the transaction represents a step toward accelerating its evolution to an alternative asset management company.“The transaction materially improves our risk profile by reducing the funding- and interest-rate risk inherent in our liability structure,” says Marc D. Schnitzer, president and CEO of Centerline. “With a leaner balance sheet and an increased percentage of revenues derived from asset management services, we aim to produce returns and growth comparable to other publicly traded alternative asset managers.”