Groundfloor Launches Innovative Deferred Pay RTL Bonds

Groundfloor Unveils First Deferred Pay RTL Bonds

Groundfloor Finance, Inc., a leader in alternative investment strategies, has made a groundbreaking announcement by offering the inaugural deferred pay residential transition loan (RTL) bonds. This issuance signifies a notable advancement, not only for Groundfloor but also for the entire residential transition loan sector.

Significance of the New Bond Offering

The introduction of this unique bond creates meaningful investment opportunities tailored for institutional investors who seek diversified credit options. Distinct from conventional RTL structures, the deferred pay model presents a compelling performance profile while ensuring the enduring integrity of the RTL asset class.

Groundfloor is not just a pioneer in creating this bond; it is also the primary servicer for RTL assets, reinforcing its role as a trusted provider in the capital markets. Co-founder Nick Bhargava noted, "Deferred pay RTLs stand out from traditional structures by offering principal payments at maturity alongside an attractive coupon, making them particularly appealing to select institutional investors."

Innovative Approach to Investment

This new offering diversifies the investment landscape within the residential transition loan arena and positions Groundfloor as a repeat issuer, driving further innovation in the market. The bond itself is secured by a varied portfolio of RTLs, all meticulously managed by Groundfloor.

Performance Trust Capital Partners, LLC took on the role of the sole structuring agent and bookrunner for this transaction. Through this bond issuance, Groundfloor underscores its growing sophistication and credibility in capital markets by effectively bypassing traditional intermediaries.

About Groundfloor

Groundfloor, established in 2013, stands at the forefront of asset-backed securities and private capital markets. It has successfully securitized numerous innovative investment structures that meet the standards set forth by the U.S. Securities and Exchange Commission. So far, Groundfloor has handled an impressive $1.7 billion in investment volume.

The company's pioneering methodology, commitment to transparency, and consistent annual returns have led to numerous accolades. These include five consecutive years on the Inc. 5000 List, four years in the Deloitte Technology Fast 500, and recognition in the prestigious Forbes Fintech 50 for 2024. For those interested in learning more about Groundfloor's innovative offerings, visit their website.

Media Contact

For inquiries, please reach out to Hela Sheth. Groundfloor actively engages with media partners and the investment community to share insights and updates on their offerings.

Frequently Asked Questions

What are deferred pay RTL bonds?

Deferred pay RTL bonds are a new type of bond introduced by Groundfloor that pays principal at maturity while offering attractive coupon rates for investors.

Who is Groundfloor Finance, Inc.?

Groundfloor Finance, Inc. is a company that specializes in alternative investments and has been a pioneer in securitizing new investment structures since its inception in 2013.

How does this bond differ from traditional RTL bonds?

This bond's deferred pay structure differs by allowing principal payments at maturity along with a competitive coupon rate, attracting institutional investors seeking diversification.

What is the significance of this bond issuance?

The bond issuance is significant as it represents Groundfloor's innovation within the residential transition loan sector and reinforces its position in the capital markets.

Where can I find more information about Groundfloor?

More information about Groundfloor, including its investment approaches and offerings, can be found on their official website.

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