Ready Capital Corporation Announces Securitization of $768 Million in Bridge Loans

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) closed a $629 million commercial mortgage collateralized loan obligation (CRE CLO), with a potential $139 million in future funding participation. The senior certificates received Aaa(sf) and AAA(sf) ratings from Moody's and KBRA, respectively. This marks the fifth CRE CLO issuance, totaling $1.8 billion in collateral. The portfolio includes 58 mortgage loans secured by 65 US properties, with 74% originated post-pandemic. Ready Capital continues to show strong momentum, closing over $650 million in bridge loans in Q1 2021.

Positive

• Completed $629 million CRE CLO, enhancing liquidity.
• Potential access to $139 million in future funding.
• Strong ratings of Aaa(sf) and AAA(sf) boost credibility.
• Portfolio diversified across 65 properties in 16 states, mitigating risk.
• 74% of loans originated post-pandemic show recovery strength.
• Strong Q1 performance with over $650 million in bridge loans.

Negative

• None.

NEW YORK, April 1, 2021 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") announced the closing of a $629 million commercial mortgage collateralized loan obligation ("CRE CLO") with the limited right to acquire all or part of $139 million in future funding participation interests. Moody's Investors Service, Inc. ("Moody's") and Kroll Bond Rating Agency, LLC ("KBRA") assigned a "Aaa(sf)" and "AAA(sf)" rating, respectively to the senior most certificates, with KBRA providing ratings to the remaining classes of the transaction.  With the closing of this CRE CLO, Ready Capital Mortgage Financing 2021-FL5, LLC ("RCMF 2021-FL5"), the Company has issued five CRE CLOs backed by $1.8 billion of collateral UPB.

RCMF 2021-FL5 consists of 58 mortgage loans secured by 65 properties across the United States.  Approximately 74% of the loan balance in the portfolio represents loans that were originated after the onset of the pandemic in March 2020, with the remaining balance attributable to loans originated prior to that.  The portfolio includes mortgage loans primarily secured by multifamily and office properties across 16 states.

"The Ready Capital team has had great momentum at the start of this year closing over $650 million in bridge loans during the first quarter," said Anuj Gupta, President of Commercial Real Estate Lending at Ready Capital. "We were fortunate to re-emerge quickly with strength out of the pandemic, bringing multi-product financing solutions to our clients." 

The CRE CLO was arranged by a bank syndicate including J.P. Morgan as sole structuring agent and Deutsche Bank as co-lead manager 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

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SOURCE Ready Capital Corporation

FAQ

What was the amount of the recent CRE CLO issued by Ready Capital (RC)?

Ready Capital announced the closing of a $629 million commercial mortgage collateralized loan obligation (CRE CLO).

What are the ratings assigned to Ready Capital's recent CRE CLO?

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

How many CRE CLOs has Ready Capital issued to date?

With the recent issuance, Ready Capital has now issued five CRE CLOs, totaling $1.8 billion in collateral.

What percentage of the loan balance in Ready Capital's portfolio was originated after March 2020?

Approximately 74% of the loan balance in the portfolio consists of loans that were originated after the onset of the pandemic in March 2020.

What was Ready Capital's bridge loan volume in Q1 2021?

Ready Capital closed over $650 million in bridge loans during the first quarter of 2021.