Franklin BSP Realty Trust, Inc. Announces Closing of $1.2 Billion CLO

Rhea-AI Summary

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) announced the closing of its largest Commercial Real Estate Collateralized Loan Obligation (CLO), the $1.2 billion FL8 CRE CLO. This marks FBRT's eighth CLO since June 2017, featuring a two-year reinvestment period and an initial 80% advance rate, with a weighted average interest rate of SOFR+1.72%. The successful closing indicates strong demand from investors, reinforcing FBRT's position in the CRE market.

Positive

• Closing of the largest CLO ($1.2 billion) enhances funding capabilities.
• Strong investor demand reflects confidence in FBRT's performance.
• Establishment of non-recourse, non-mark-to-market liability structure.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced the closing of BSPRT 2022-FL8, a $1.2 billion managed Commercial Real Estate Collateralized Loan Obligation (“FL8 CRE CLO”). This was FBRT’s eighth CLO completed since June 2017. The FL8 CRE CLO features a two-year reinvestment period with an initial advance rate of 80% and a weighted average interest rate of SOFR+1.72% before accounting for transaction costs.

Michael Comparato, Head of Commercial Real Estate of BSP, added: “We are excited to announce our largest CLO to date, further increasing our non-recourse, non-mark-to-market liability structure. The overwhelming demand for FL8 from new and existing investors exhibits FBRT’s continued strength in the CRE CLO market and is another significant milestone for the Company.”

Barclays Capital Inc. and Wells Fargo Securities, LLC served as co-lead managers and joint bookrunners. In addition, Barclays Capital Inc. served as sole structuring agent.

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.

About Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of September 30, 2021, FBRT had over $3 billion of assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Templeton. For further information, please visit www.fbrtreit.com.

Forward-Looking Statements

This communication includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as “will,” “should,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe management’s beliefs, intentions or goals also are forward-looking statements. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations and financial condition of the Company or the price of FBRT stock. These forward-looking statements involve certain risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to the risks and important factors contained and identified in FBRT’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof. FBRT does not undertake any obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220215005141/en/

Investor Relations Contact:

Lindsey Crabbe

l.crabbe@benefitstreetpartners.com

(214) 874-2339

Source: Franklin BSP Realty Trust, Inc.

FAQ

What is FBRT's recent CLO announcement?

FBRT announced the closing of its largest CLO, the $1.2 billion FL8 CRE CLO.

What are the terms of the FL8 CRE CLO?

The FL8 CRE CLO features a two-year reinvestment period, an initial advance rate of 80%, and a weighted average interest rate of SOFR+1.72%.

How many CLOs has FBRT completed since June 2017?

FBRT has completed eight CLOs since June 2017.

What does the high investor demand for FL8 indicate?

The high demand for FL8 indicates strong investor confidence in FBRT's market position.

Which firms served as co-lead managers for the FL8 CRE CLO?

Barclays Capital Inc. and Wells Fargo Securities, LLC were the co-lead managers for the FL8 CRE CLO.