Franklin BSP Realty Trust, Inc. Announces Closing of Approximately $800 Million CLO

Rhea-AI Summary

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) announced the successful closing of BSPRT 2022-FL9, an $800 million Commercial Real Estate Collateralized Loan Obligation (CLO). This marks the ninth CLO since June 2017. The FL9 CLO features an 83.5% initial advance rate and a weighted average interest rate of SOFR+2.80%. Despite market volatility and wider pricing, the transaction demonstrates strong investor demand and strengthens the company's non-recourse liability structure.

Positive

• Successful closing of $800 million CLO enhances capital structure.
• Strong demand from investors indicates market confidence.
• Improved non-recourse, non-mark-to-market liability structure.

Negative

• CLO market volatility and pricing are significantly wider than earlier in 2022.

NEW YORK--(BUSINESS WIRE)-- Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT” or the “Company”) today announced the closing of BSPRT 2022-FL9, an approximately $800 million managed Commercial Real Estate Collateralized Loan Obligation (“FL9 CRE CLO”). This was FBRT’s ninth CLO completed since June 2017. The FL9 CRE CLO features a two-year reinvestment period with an initial advance rate of 83.5% and a weighted average interest rate of SOFR+2.80% before accounting for discount and transaction costs.

Michael Comparato, Head of Commercial Real Estate for BSP, added: “We are pleased with the execution on our most recent CLO and saw strong demand from new and existing investors. While the CLO market has been volatile and pricing is meaningfully wider than levels we saw earlier in 2022, this transaction further increases our non-recourse, non-mark-to-market liability structure and is a testament to the strength of our platform.”

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 March 31, 2022, FBRT had over $7.1 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. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

Our forward-looking statements are subject to various risks and uncertainties, including but not limited to the risks and important factors contained and identified in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our subsequent filings with the SEC, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220629005100/en/

Investor Relations Contact:

Lindsey Crabbe

l.crabbe@benefitstreetpartners.com

(214) 874-2339

Source: Franklin BSP Realty Trust, Inc.

FAQ

What is the recent press release from FBRT about?

FBRT announced the closing of an $800 million CLO, enhancing its capital structure.

What is the interest rate for the FL9 CLO issued by FBRT?

The FL9 CLO features a weighted average interest rate of SOFR+2.80%.

When did FBRT complete its ninth CLO?

FBRT completed its ninth CLO, BSPRT 2022-FL9, in June 2022.

What was the initial advance rate for the FL9 CLO?

The initial advance rate for the FL9 CLO was 83.5%.

Who were the joint bookrunners for the FBRT CLO?

Wells Fargo Securities, LLC and Barclays Capital Inc. served as joint bookrunners.