BrightSpire Capital Pays Off $200 Million Preferred Indebtedness to Goldman Sachs Asset Management Vintage Funds

Rhea-AI Summary

BrightSpire Capital (NYSE: BRSP) announced on December 22, 2021 the successful payoff of its "5-Investment Preferred Financing," enhancing its ownership of a triple-net warehouse distribution portfolio. This action, combined with a recent co-invest portfolio sale, is projected to increase the company's GAAP book value by $0.53 and undepreciated book value by $0.69. CEO Andy Witt emphasized the simplification of the portfolio as a key milestone as the company progresses into 2022.

Positive

• Projected increase of GAAP book value by $0.53.
• Projected increase of undepreciated book value by $0.69.
• Full ownership regained of triple-net warehouse distribution portfolio.

Negative

• None.

Projected Net Increase of $0.53 to Company’s GAAP Book Value

NEW YORK--(BUSINESS WIRE)-- On December 22, 2021, subsidiaries of BrightSpire Capital, Inc. (NYSE: BRSP) (“BrightSpire Capital” or the “Company”), one of the largest publicly traded commercial real estate (CRE) credit REITs, completed the payoff of its “5-Investment Preferred Financing”, previously provided by the Vintage Funds within Goldman Sachs Asset Management. While 4 of the underlying investments were sold in the Company’s recently closed co-invest portfolio sale, the payoff of this preferred financing also allows the Company to take back 100% ownership of its triple-net warehouse distribution portfolio leased to a national grocery chain.

The combination of the co-invest portfolio sale and payoff of the “5-Investment Preferred Financing” will result in a projected net increase of approximately $0.53 to the Company’s GAAP book value and approximately $0.69 to undepreciated book value, details of which and other fourth quarter 2021 results to be set forth in the Company’s upcoming annual report on Form 10-K for the fiscal year ended December 31, 2021.

“The combination of the previously announced co-invest portfolio sale and this preferred financing payoff have meaningfully simplified the BrightSpire portfolio. Completing these two transactions are important milestones for BrightSpire and the continued execution of our business plan as we head into 2022. Thank you to the team at Goldman Sachs Asset Management for your support and partnership throughout the duration of our financing relationship,” commented Andy Witt, COO of BrightSpire Capital.

About BrightSpire Capital, Inc.

BrightSpire Capital, Inc. (NYSE: BRSP), formerly Colony Credit Real Estate, Inc. (NYSE: CLNY), is one of the largest publicly traded commercial real estate (CRE) credit REITs, focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased properties predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and taxed as a REIT for U.S. federal income tax purposes. For additional information regarding the Company and its management and business, please refer to www.brightspire.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that could cause actual results to differ materially from BrightSpire Capital’s expectations include, but are not limited to, the preservation and/or net effect on Company book value for such events; the ability to simplify the portfolio and/or realize efficiencies, as well as achieve anticipated strategic and financial benefits of the internalization; the ability to maintain liquidity and/or a pipeline to generate additional earnings; and uncertainties regarding the ongoing impact of the novel coronavirus (COVID-19). The foregoing list of factors is not exhaustive. Additional information about these and other factors can be found in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as well as in BrightSpire Capital’s other filings with the U.S. Securities and Exchange Commission. Moreover, each of the factors referenced above are likely to also be impacted directly or indirectly by the ongoing impact of COVID-19 and investors are cautioned to interpret substantially all of such statements and risks as being heightened as a result of the ongoing impact of the COVID-19. Additional information about these and other factors can be found in BrightSpire Capital’s reports filed from time to time with the Securities and Exchange Commission.

BrightSpire Capital cautions its investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. BrightSpire Capital is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and BrightSpire Capital does not intend to do so.

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Investor Relations

BrightSpire Capital, Inc.

Addo Investor Relations

Lasse Glassen

310-829-5400

Source: BrightSpire Capital, Inc.

FAQ

What is the significance of BrightSpire Capital's recent financing payoff?

The payoff of the '5-Investment Preferred Financing' allows BrightSpire to regain full ownership of its triple-net warehouse distribution portfolio and is projected to increase its GAAP book value by $0.53.

What impact will the co-invest portfolio sale have on BrightSpire's financials?

The recent co-invest portfolio sale, in conjunction with the financing payoff, is expected to enhance the company's undepreciated book value by approximately $0.69.

When will BrightSpire Capital release its annual report?

BrightSpire Capital intends to provide additional details and fourth quarter results in its upcoming annual report on Form 10-K for the fiscal year ended December 31, 2021.

What milestones has BrightSpire Capital achieved recently?

BrightSpire Capital completed the payoff of preferred financing and a co-invest portfolio sale, marking significant milestones in their business plan as they move into 2022.

How does the financing payoff affect BrightSpire Capital's portfolio?

The financing payoff simplifies BrightSpire's portfolio by allowing it to regain 100% ownership of certain assets, which is viewed as a strategic advantage.