ATLANTA, Dec. 18, 2024 - Groundfloor Finance, Inc., a pioneer in alternative investing, is introducing the issuance of the first-ever deferred pay residential transition loan (RTL) bond. This inaugural offering marks a significant milestone in both the residential transition loan market and Groundfloor's evolution as a key player in capital markets.
As the first to securitize this product, Groundfloor is introducing a bond designed to appeal to institutional investors seeking differentiated credit opportunities. Unlike traditional RTL structures, this deferred pay model offers a unique performance profile while maintaining the underlying integrity and stability of the RTL asset class. Groundfloor is already the primary servicer for this asset.
"Deferred pay RTLs differ from standard structures by paying principal at maturity while also paying a very attractive coupon, which enhances their appeal to certain institutional investors," said Groundfloor co-founder Nick Bhargava. "This bond not only diversifies the investment options within the residential transition loan sector, but also positions Groundfloor as a repeat issuer, driving innovation in the space."
The bond is secured by a diversified portfolio of RTLs originated and asset managed by Groundfloor. Performance Trust Capital Partners, LLC was the sole structuring agent and bookrunner on the transaction. By issuing this bond, Groundfloor bypasses traditional intermediaries, demonstrating its growing sophistication and credibility as a capital markets participant.
About Groundfloor
Founded in 2013, Groundfloor is a pioneer in asset-backed securities and private capital. The company has securitized multiple new types of investment structures qualified by the U.S. Securities and Exchange Commission. To date, Groundfloor has managed more than $1.7 billion in investment volume. Because of its innovative approach, transparency, and steady year-over-year returns, the company has won multiple awards, including five consecutive years on the Inc. 5000 List, four years on the Deloitte Technology Fast 500, and being named to the 2024 Forbes Fintech 50. For more information, visit Groundfloor.com.
Media Contact:
Hela Sheth
hela@katalystcomms.com
SOURCE Groundfloor Finance Inc.
