NEWPORT BEACH, Calif., May 15, 2023 (GLOBE NEWSWIRE) -- Pelorus Capital Group, the leading data-driven provider of commercial real estate loans for the regulated cannabis sector, announced that $50 million in aggregate principal amount of 7% senior secured notes due September 26, 2026 (the “Notes”) issued by its private mortgage real estate investment trust subsidiary, the Pelorus Fund REIT, LLC (“Pelorus Fund” or “Fund”), have been assigned an A rating by Egan-Jones Rating Company – the highest rating issued to date in the cannabis industry.
“We are proud to achieve a cannabis-industry first by achieving an A-flat rating," said Dan Leimel, CEO of Pelorus Capital Group (previously Pelorus Equity Group) and the manager of the Pelorus Fund. “We believe this two-step rating increase reflects our financial health and our significant growth, while securing the Notes provides more flexibility as the Pelorus Fund continues to grow and gain market share. Against a backdrop of challenging market conditions, particularly within the cannabis sector, we believe we are now even better positioned to grow our deal pipeline, strengthen our business and offer attractive lending solutions to cannabis businesses across the country.”
The Pelorus Fund issued the Notes, which were previously unsecured, in 2021. Upon issuance the Notes were assigned a BBB+ rating from Egan-Jones, making the Notes the first issued by a privately held mortgage REIT (“mREIT”) to receive what was then the highest credit rating achieved by an issuer operating within the cannabis sector. When this rating was issued in 2021, Pelorus Fund had approximately $130M in assets under management (“AUM”), which has nearly tripled to approximately $376M in AUM currently. Recently, the Pelorus Fund completed a transaction to secure the Notes, which when combined with the strength of the balance sheet, successful track record and investment income growth year-over-year resulted in Egan-Jones upgrading the BBB+ rating to an A rating.
About Pelorus Capital Group and Pelorus Fund REIT, LLC
Pelorus Capital Group, the leading data-driven provider of commercial real estate loans for the regulated cannabis sector, and Pelorus Fund REIT, LLC (“Pelorus” or “Fund”), a private mortgage real estate investment trust, are seeking to change the commercial real estate lending landscape in the cannabis sector.
Pelorus offers a range of innovative transactional solutions to address the diverse needs of real estate investors and portfolio managers, and its flexible acquisition and bridge and stabilized lending programs are the direct result of the management team’s involvement in more than 5,000 transactions of varying size and complexity.
Since 1991, the management team has participated in more than $5B of real estate investment transactions using both debt and equity solutions, which management believes provides the Pelorus team with the experience to understand an opportunity, structure a solution and execute a timely close.
To date, Pelorus has completed 73 commercial real-estate loan transactions and deployed approximately $545 million in loan proceeds to cannabis businesses and real estate owners, comprising approximately 4,473,000 sq. ft. in 10 states across the U.S. With the ability to fund approved construction draws for reimbursement in an average of one to three days and address the financing of the entire project, under a single agreement, Pelorus seeks to help to stabilize cash flow for its clients, so they are able to remain focused on their core business goals and objectives. For more information, visit https://pelorusequitygroup.com/.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Pelorus operates, management’s beliefs and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.
For further information, please contact:
Pelorus Borrower/Broker Inquires:
info@pelorusequitygroup.com
Pelorus Fund Inquires:
investorrelations@pelorusequitygroup.com
Pelorus Capital Group Media Contacts:
Henry Robertson
914-417-8184
pelorus@mattio.com
