An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Franklin BSP Realty Trust, Inc. Announces Closing of $900 Million CLO
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Franklin BSP Realty Trust, Inc. (NYSE: FBRT) has successfully closed its largest Commercial Real Estate Collateralized Loan Obligation (CLO), worth $900 million. The FL7 CRE CLO features an 80.25% initial advance rate and a weighted average interest rate of L+1.64%. Since June 2017, this marks FBRT's seventh CLO, signaling solid demand from investors. CEO Richard Byrne emphasizes the importance of capital market access in transitioning the Capstead portfolio to a commercial loan strategy. The initiative enhances funding diversification for the company.
Positive
Closed largest CLO to date at $900 million, indicating strong investor demand.
Features 80.25% initial advance rate and competitive interest rate of L+1.64%.
Seventh CLO since June 2017, showcasing ongoing market activity and stability.
NEW YORK--(BUSINESS WIRE)--
Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced the closing of BSPRT 2021-FL7, a $900 million managed Commercial Real Estate Collateralized Loan Obligation (“FL7 CRE CLO”). This was FBRT’s seventh CLO completed since June 2017. The FL7 CRE CLO features a two-year reinvestment period with an initial advance rate of 80.25% and a weighted average interest rate of L+1.64% before accounting for transaction costs.
Richard Byrne, Chairman and Chief Executive Officer of FBRT stated: “We are proud to announce the closing of our latest CLO which is our largest to date. Our access to the capital markets is an important pillar for us, especially as we continue to actively transition the Capstead portfolio into our commercial loan strategy.”
Michael Comparato, Head of Commercial Real Estate of BSP added: “The combination of FBRT’s best-in-class commercial real estate platform and our strong historical performance has positioned us to achieve market-leading terms and has further diversified our funding sources. We received very strong demand from new and existing investors in this transaction. FBRT has been an active participant in the CRE CLO market and continues to view it as a market leading liability structure.”
Wells Fargo Securities, LLC and Barclays Capital Inc. served as co-lead managers and joint bookrunners. In addition, Wells Fargo Securities, LLC 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.
