Franklin BSP Realty Trust, Inc. Announces Closing Of ~$900M Collateralized Loan Obligation

Author: Benzinga Newsdesk | September 28, 2023 04:33pm

Franklin BSP Realty Trust, Inc. (NYSE:FBRT) ("FBRT" or the "Company") today announced the closing of BSPRT 2023-FL10, an approximately $900 million managed Commercial Real Estate Collateralized Loan Obligation ("FL10 CRE CLO"). This was FBRT's tenth CLO completed since June 2017. The FL10 CRE CLO features an 18-month reinvestment period with an initial advance rate of 85.5% and a weighted average interest rate of Term SOFR+275% before accounting for discount and transaction costs.

Michael Comparato, President of FBRT, said: "We are excited to close FL10, the first new issue, multi-asset class managed CRE CLO in the market since August 2022. FL10's starting as-is Loan-to-Value of 59% is amongst the lowest leverage in the CLO market in recent years. This transaction allows us to increase capacity on our warehouse lines by converting a meaningful amount of warehouse liabilities to a non-recourse, non-mark-to-market liability structure. We are pleased with the execution of FL10 and our return to the CLO market."

J.P. Morgan, LLC served as the sole structuring agent. Wells Fargo Securities, LLC and Barclays Capital Inc. served as co-lead managers and joint bookrunners.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Posted In: FBRT