Ready Capital Corporation Announces Securitization of $652.5 Million in Bridge Loans

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) has successfully closed a $652.5 million commercial mortgage collateralized loan obligation (CRE CLO), with rights to acquire $87.8 million in future funding interests. This marks the sixth CRE CLO issued by the company, backed by a total of $2.45 billion of collateral. Moody's and DBRS assigned high ratings of Aaa(sf) and AAA(sf), respectively, to the senior certificates. The portfolio consists of 52 loans secured by 55 properties, primarily multifamily, originated post-pandemic. So far this year, the company closed over $1.5 billion across more than 70 loans.

Positive

• Successfully closed a $652.5 million CRE CLO.
• Secured ratings of Aaa(sf) from Moody's and AAA(sf) from DBRS for senior certificates.
• Total of $2.45 billion collateral backing across six CRE CLOs.
• Portfolio consists of 52 loans secured by 55 properties, primarily multifamily, enhancing diversification.

Negative

• None.

NEW YORK, Sept. 2, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced the closing of a $652.5 million commercial mortgage collateralized loan obligation ("CRE CLO") with the limited right to acquire all or part of $87.8 million in future funding participation interests.

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

With the closing of this CRE CLO, Ready Capital Mortgage Financing 2021-FL6, LLC ("RCMF 2021-FL6"), the Company has issued six CRE CLOs backed by a combined $2.45 billion of collateral UPB.

RCMF 2021-FL6 consists of 52 RC-originated floating rate loans secured by 55 properties across the United States.  100% of the loan balance in the portfolio represents loans that were originated after the pandemic had been declared in 2020 and the portfolio includes mortgage loans primarily secured by multifamily, with the addition of mixed-use and retail properties across 20 states.

"We have built on this year's steady economic growth with a successful offering that now brings more than $1.5 billion closed across more than 70 loans through the first half of the year," said Adam Zausmer, Chief Credit Officer.  "We are seeing continued momentum so far in the third quarter as our team continues producing diversified structured financing solutions to our clients." 

The CRE CLO was arranged by a bank syndicate including J.P. Morgan as sole structuring agent and Credit Suisse and Deutsche Bank as co-lead managers with Piper Sandler as the co-manager.

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 total amount of the CRE CLO closed by Ready Capital Corporation on Sept. 2, 2021?

The total amount of the CRE CLO closed by Ready Capital Corporation on Sept. 2, 2021, is $652.5 million.

What ratings did Moody's and DBRS assign to the CRE CLO issued by Ready Capital?

Moody's assigned a rating of Aaa(sf) while DBRS assigned a rating of AAA(sf) to the senior most certificates of the CRE CLO.

How many CRE CLOs has Ready Capital Corporation issued to date?

Ready Capital Corporation has issued six CRE CLOs to date.

What is the backing collateral amount for the CRE CLOs issued by Ready Capital Corporation?

The CRE CLOs issued by Ready Capital Corporation are backed by a total of $2.45 billion in collateral.

What types of properties are included in the CRE CLO portfolio of Ready Capital Corporation?

The CRE CLO portfolio of Ready Capital Corporation includes loans secured primarily by multifamily properties, along with mixed-use and retail properties.