Ready Capital Corporation Announces Pricing of RCMF 2021-FL7, a Securitization of $927.2 Million in Bridge Loans

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) announced the pricing of a $927.2 million commercial mortgage collateralized loan obligation (CRE CLO), with an option for $135.2 million in future funding. The senior certificates received a AAA rating from Moody's and DBRS. This transaction constitutes the company's seventh CRE CLO and represents its largest issuance to date, totaling $3.39 billion in collateral. The portfolio includes 76 floating rate loans secured by 89 properties, primarily in multifamily (91.7%) and industrial (4.4%) sectors across 22 states.

Positive

• Successful pricing of a $927.2 million CRE CLO, indicating strong market interest.
• AAA rating assigned to senior certificates by Moody's and DBRS, reflecting high credit quality.
• Largest CRE CLO issuance to date, enhancing Ready Capital's market position.
• Diverse portfolio of 76 loans secured by 89 properties across multiple states, reducing risk.

Negative

• None.

NEW YORK, Nov. 15, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced the pricing of a $927.2 million commercial mortgage collateralized loan obligation ("CRE CLO") transaction with the limited right to acquire all or part of $135.2 million in future funding participation interests.

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. 

Upon closing, the transaction, issued by Ready Capital Mortgage Financing 2021-FL7, LLC ("RCMF FL7"), will represent the Company's seventh CRE CLO since inception and largest CRE CLO to date, with the Company's total CRE CLO issuance backed by a combined $3.39 billion of collateral UPB. The transaction was met with significant demand from investors with approximately 45 unique accounts participating.

RCMF 2021-FL7 consists of 76 RC-originated floating rate loans secured by 89 properties across the United States.  The portfolio includes mortgage loans primarily secured by multifamily (91.7%), and industrial (4.4%) properties across 22 states.

"The closing of RCMF 2021-FL7 marks the latest in a series of significant milestones for Ready Capital in 2021," said Tim Geraghty, Head of Capital Markets.  "We're very pleased with the execution and investor reception and eager to continue growing our CRE lending platform." 

The pending 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 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 Ready Capital Corporation's latest CRE CLO transaction?

Ready Capital announced a pricing of a $927.2 million CRE CLO, the largest in its history.

How much future funding is Ready Capital allowed in their latest CRE CLO?

The company has the limited right to acquire up to $135.2 million in future funding participation interests.

What rating did Moody's and DBRS assign to Ready Capital's CRE CLO?

The senior most certificates received a AAA rating from both Moody's and DBRS.

What types of properties back the new CRE CLO from Ready Capital?

The CRE CLO is backed primarily by multifamily (91.7%) and industrial (4.4%) properties.

How many properties are included in Ready Capital's latest CRE CLO?

The transaction includes loans secured by 89 properties across 22 states.