Ladder Capital Corp Announces Positive Ratings Momentum from S&P, Moody’s & Fitch and Pricing of $650 Million Upsized Senior Notes Offering

Rhea-AI Summary

Ladder Capital Corp (NYSE: LADR) has announced the pricing of a private offering of $650 million in 4.750% Senior Notes due 2029, an increase of $250 million from the initial offering size. The offering is expected to close around June 23, 2021. Additionally, Ladder received upgraded ratings from S&P, Moody’s, and Fitch, boosting its long-term senior unsecured rating to BB- and revising its outlook to Stable. The Notes are restricted to qualified institutional buyers and will not be registered under the Securities Act.

Positive

• Ladder increased the size of its Senior Notes offering by $250 million.
• The Senior Notes were priced at a tighter spread than previously expected.
• Ladder received positive credit rating changes from three agencies, moving the outlook to Stable.
• S&P upgraded Ladder's long-term senior unsecured rating to BB-.

Negative

• None.

Ladder Capital Corp (“Ladder,” the “Company” or “our”) (NYSE: LADR) announced that, yesterday, its subsidiaries, Ladder Capital Finance Holdings LLLP and Ladder Capital Finance Corporation, priced a private offering of $650 million in aggregate principal amount of 4.750% Senior Notes due 2029 (the “Notes”), which represents a $250 million upsize from the previously announced size of the offering and a tighter pricing than the initial range. The sale of the Notes is expected to be completed on or about June 23, 2021, subject to customary closing conditions.

Ladder also received positive ratings action from three rating agencies this week.

S&P Global (“S&P”), Moody’s Investors Service (“Moody’s”) and Fitch Ratings (“Fitch”) each revised their outlook on Ladder to Stable. Further, S&P eliminated the notch between Ladder’s bond and corporate family ratings, upgrading the Company’s long-term senior unsecured rating to BB- and affirming the Company’s long-term corporate family rating of BB-.

The Notes

The Notes were offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell the Notes or a solicitation for an offer to purchase the Notes.

About Ladder

Ladder Capital Corp is an internally-managed commercial real estate investment trust with $5.4 billion of assets as of March 31, 2021. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns. As one of the nation’s leading commercial real estate capital providers, we specialize in underwriting commercial real estate and offering flexible capital solutions within a sophisticated platform.

Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment activities include: (i) our primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) investing in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) owning and operating commercial real estate, including net leased commercial properties.

Founded in 2008, and led by Brian Harris, the Company’s Chief Executive Officer, Ladder is run by a highly experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Members of Ladder’s management and board of directors are highly aligned with the Company’s investors, owning over 10% of the Company’s equity.

Forward-Looking Statements and Coronavirus Risk

Certain statements in this release may constitute “forward-looking” statements, including those regarding the closing of the Notes offering. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Ladder believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results, including the impact of the COVID-19 pandemic on the Company’s business. There are a number of risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, most prominently, market factors affecting the Notes offering and the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as well as its consolidated financial statements, related notes, and other financial information appearing therein, and its other filings with the U.S. Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Ladder expressly disclaims any obligation or undertaking to release any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or changes in events, conditions, or circumstances on which any such statement is based.

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FAQ

What is Ladder Capital Corp's recent bond offering?

Ladder Capital Corp announced a private offering of $650 million in 4.750% Senior Notes due 2029.

Why did Ladder Capital receive positive ratings from S&P, Moody’s, and Fitch?

Ladder Capital's ratings were upgraded based on improved outlooks and creditworthiness.

When is the expected completion date for Ladder's Senior Notes offering?

The offering is expected to close on or about June 23, 2021.

What are the terms of Ladder Capital's Senior Notes?

The Senior Notes have an interest rate of 4.750% and are due in 2029.

Who can purchase the Senior Notes issued by Ladder Capital?

The Notes are offered to qualified institutional buyers under Rule 144A.