Trippy Covenants: Meridian Capital's Corporate Loan from NYCB

The capital-markets bromance between New York Community Bank & Meridian Capital Group is by now well-documented. In August, in response to an SEC query, NYCB confirmed what industry insiders had long speculated: Meridian referred the bank about 75% of its multi business in NY-NJ-PA, and brokered nearly half of its 350 biggest loan deals. Since the Mnuchin-led takeover, NYCB has totally cleaned house and has cut Meridian out of the action.

One element of the relationship, however, has remained unreported: the existence of a nine-figure corporate loan NYCB made to Meridian, around the time agency-lender NewPoint was born. The Promote confirmed the existence of the loan (somewhere between $100-130M) and reported that insiders are asking if covenants – typically cash-flow based, bad-boy carveouts, etc. – have been breached given the rollercoaster ride the firm's been on over the past 18 mos.

Full story here: https://ten31.beehiiv.com/p/meridian-s-nycb-burden-a-capstack-for-the-ages#meridians-nycb-burden