Ready Capital Corporation Announces Closing of RCMF 2022-FL8, a Securitization of $1.135 Billion in Bridge Loans

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) has successfully closed a $1.135 billion commercial mortgage collateralized loan obligation (CRE CLO) transaction, marking its largest issuance to date. This transaction, rated AAA by Moody's and DBRS, comprises 67 first-lien floating rate loans secured by 89 properties across the U.S., primarily multifamily (92.7%) and industrial (7.3%). With a total of $4.4 billion in CRE CLO issuances since inception, this successful transaction highlights strong market demand, evidenced by participation from 27 unique investors.

Positive

• Successful closing of the largest CRE CLO issuance of $1.135 billion.
• AAA ratings from Moody's and DBRS enhance investor confidence.
• Strong demand from 27 unique investors indicates robust market interest.
• Diversified portfolio backing the CLO, primarily focused on multifamily properties.

Negative

• None.

NEW YORK, March 10, 2022 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced the closing of a $1.135 billion commercial mortgage collateralized loan obligation ("CRE CLO") transaction.

Moody's Investor Service, Inc. ("Moody's") and DBRS, Inc. ("DBRS") assigned a "AAA" rating, to the senior most certificates, with DBRS providing ratings to the remaining classes of the transaction. 

The transaction, issued by Ready Capital Mortgage Financing 2022-FL8, LLC ("RCMF FL8"), represents the Company's eighth CRE CLO since inception and largest CRE CLO to date, with the Company's total CRE CLO issuance backed by approximately $4.4 billion of collateral UPB, combined. The transaction was met with demand from 27 unique investors and provides the company with non-recourse, non-mark to market, term financing.

RCMF 2022-FL8 consists of 67 RC-originated first-lien floating rate loans secured by 89 properties across the United States.  The portfolio includes mortgage loans primarily secured by multifamily (92.7%), and industrial (7.3%) properties across 21 states.

The CRE CLO was arranged by a bank syndicate including J.P. Morgan Securities LLC as sole structuring agent, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. as co-lead managers and Amherst Pierpont Securities LLC, Performance Trust Capital Partners LLC and Piper Sandler & Co as co-managers.

About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.

Contact
Investor Relations
Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com
Ready Capital Media Relations
PR@readycapital.com

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SOURCE Ready Capital Corporation

FAQ

What is the significance of Ready Capital's $1.135 billion CRE CLO transaction on March 10, 2022?

The $1.135 billion CRE CLO transaction is Ready Capital's largest issuance to date, reflecting strong market demand and investor confidence.

What types of properties back the loans in Ready Capital's March 2022 CRE CLO?

The loans are primarily secured by multifamily properties (92.7%) and industrial properties (7.3%) across 21 states.

How does the AAA rating from Moody's and DBRS affect Ready Capital's market position?

The AAA rating enhances investor confidence, making the securities more attractive to a broader range of investors.

How much total CRE CLO issuance has Ready Capital completed?

Ready Capital has completed a total CRE CLO issuance of approximately $4.4 billion since its inception.