Granite Point Mortgage Trust Inc. Announces Pricing of $621 Million Commercial Real Estate CLO

Rhea-AI Summary

Granite Point Mortgage Trust Inc. (NYSE: GPMT) announced the pricing of its GPMT 2021-FL4, a $621 million managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO). The CLO aims to place around $503 million in investment-grade securities with institutional investors, providing term-matched financing on a non-mark-to-market, non-recourse basis. The initial advance rate is set at 80.875% with a weighted-average interest rate of LIBOR + 1.68%. Closing is expected on or around November 16, 2021. This issuance will support GPMT's financing strategy while enhancing its funding mix.

Positive

• Pricing of $621 million CRE CLO indicates strong demand and trust in GPMT's financial strategy.
• Expected placement of approximately $503 million in investment-grade securities enhances capital structure.
• Initial advance rate of 80.875% shows favorable terms for financing.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Granite Point Mortgage Trust Inc. (NYSE: GPMT) (“GPMT,” “Granite Point” or the “Company”) today announced the pricing of GPMT 2021-FL4, an approximately $621 million managed Commercial Real Estate Collateralized Loan Obligation (“CRE CLO”), in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company expects approximately $503 million of investment grade securities to be placed with institutional investors, providing GPMT with term-matched financing on a non-mark-to-market and non-recourse basis. GPMT 2021-FL4 features an initial advance rate of 80.875% and a weighted-average interest rate at issuance of LIBOR + 1.68%, before accounting for transaction costs. The CLO is expected to close on or around November 16, 2021, subject to customary closing conditions.

Upon the closing of GPMT 2021-FL4, Granite Point will have sponsored four CRE CLOs totaling approximately $3.1 billion. The Company’s CRE CLO financings support its fundamental strategy of financing its portfolio of senior floating-rate mortgage loans with a well-diversified mix of funding sources, emphasizing term-matched, non-mark-to-market and non-recourse borrowings at an attractive cost of capital. Granite Point intends to apply the net cash proceeds from GPMT 2021-FL4 to repay outstanding balances on various repurchase facilities, after which the Company estimates the percentage of credit non-mark-to-market financing to be over 75% of its total borrowings.

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

About Granite Point Mortgage Trust Inc.
Granite Point Mortgage Trust Inc. is a Maryland corporation focused on directly originating, investing in and managing senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments. Granite Point is headquartered in New York, NY. Additional information is available at www.gpmtreit.com.

Forward-Looking Statements
This release may include statements and information that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and we intend such forward-looking statements to be covered by the safe harbor provisions therein and are included in this statement for purposes of invoking these safe harbor provisions. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, targets, expectations, anticipations, assumptions, estimates, intentions and future performance. The forward-looking statements made in this release include, but may not be limited to, expectations regarding the use of proceeds from the offering.

Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “target,” “believe,” “outlook,” “potential,” “continue,” “intend,” “seek,” “plan,” “goals,” “future,” “likely,” “may” and similar expressions or their negative forms, or by references to strategy, plans or intentions. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical facts or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, in particular those related to the COVID-19 pandemic, including the ultimate impact of COVID-19 on our business, financial performance and operating results. Our expectations, beliefs and estimates are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and estimates will prove to be correct or be achieved, and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

These forward-looking statements are subject to risks and uncertainties, including, among other things, those described in our Annual Report on Form 10-K for the year ended December 31, 2020, and any subsequent Form 10-Q and Form 8-K filings made with the SEC, under the caption “Risk Factors.” These risks may also be further heightened by the continued and evolving impact of the COVID-19 pandemic. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Additional Information
Stockholders of Granite Point and other interested persons may find additional information regarding the Company at the Securities and Exchange Commission’s Internet site at www.sec.gov or by directing requests to: Granite Point Mortgage Trust Inc., 3 Bryant Park, 24^th Floor, New York, NY 10036, telephone (212) 364-5500.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006249/en/

Investors: Marcin Urbaszek, Chief Financial Officer, Granite Point Mortgage Trust Inc., (212) 364-5500, investors@gpmtreit.com

Source: Granite Point Mortgage Trust Inc.

FAQ

What is the GPMT 2021-FL4 CRE CLO?

The GPMT 2021-FL4 is a $621 million managed Commercial Real Estate Collateralized Loan Obligation aimed at financing GPMT's mortgage loans.

When is the closing date for GPMT's 2021-FL4 CRE CLO?

The closing is expected on or around November 16, 2021.

What is the interest rate for GPMT 2021-FL4?

The weighted-average interest rate at issuance is LIBOR + 1.68%.

How will GPMT use the proceeds from the 2021-FL4 offering?

GPMT intends to use the net cash proceeds to repay outstanding balances on various repurchase facilities.

What percentage of GPMT's borrowings will be non-mark-to-market financing after the CLO?

Post-closing, GPMT estimates that over 75% of its total borrowings will be credit non-mark-to-market financing.