Pelorus Capital prices first-ever commercial real estate CLO in the cannabis space

Pelorus Capital Group said Monday it has priced the first commercial real estate collateralized loan obligation (CLO) in the cannabis sector, with a $70 million offering, PCG 2023-1. The Newport Beach, Calif., company said the deal marks the first-ever securitization for cannabis-linked real estate assets. Pelorus sold $45 million of the bonds to institutional investors and hedge funds and retained a third of the offering. Performance Trust was the sole book runner for the CLO. Pelorus said it’s planning more offerings later this year. “Most industry insiders, lenders and investors believed securitization would never happen in the cannabis sector without a change in legislation — We couldn’t be prouder to prove them wrong,” Pelorus Capital Group CEO Dan Leimel said in a statement.