TPG RE Finance Trust, Inc. Closes $1.1 Billion Commercial Real Estate CLO

Rhea-AI Summary

TPG RE Finance Trust (NYSE: TRTX) has successfully closed TRTX 2025-FL6, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO) on March 28, 2025. The company placed $962.5 million of investment grade securities with institutional investors, securing non-mark-to-market, non-recourse term financing.

Key features of TRTX 2025-FL6 include:

• 30-month reinvestment period
• 87.5% advance rate
• Weighted average interest rate of Term SOFR plus 1.83% at issuance

TRTX also redeemed TRTX 2019-FL3 on March 17, 2025, which had $114.6 million outstanding. The combined transactions generated net cash proceeds of approximately $191.0 million for investment and corporate purposes.

Positive

• Secured $1.1 billion in CRE CLO financing on favorable non-mark-to-market, non-recourse terms
• Generated $191.0 million in net cash proceeds for investments
• Achieved 87.5% advance rate on the new CLO
• Successfully placed $962.5 million of investment grade securities with institutional investors

Negative

• New CLO carries interest rate cost of SOFR plus 1.83%

Insights

Financial Analyst

TPG RE Finance Trust's $1.1 billion Commercial Real Estate CLO transaction represents a significant financial milestone with multiple strategic benefits. The deal provides TRTX with $962.5 million of investment-grade financing on a non-mark-to-market, non-recourse basis - crucial protective features that shield the company from potential margin calls in volatile markets.

The transaction's structure offers three key advantages: a 30-month reinvestment period providing portfolio management flexibility, an impressive 87.5% advance rate indicating strong investor confidence in the collateral quality, and a competitive weighted average interest rate of Term SOFR plus 1.83%.

Most importantly, by simultaneously closing this new CLO and redeeming the older $114.6 million TRTX 2019-FL3, the company generated $191 million in net cash proceeds - representing approximately 28% of TRTX's current market capitalization. This substantial liquidity injection creates significant deployment opportunities in the commercial real estate lending market.

The successful placement with institutional investors, coupled with the involvement of major financial institutions as bookrunners, demonstrates continued market appetite for quality structured CRE debt despite broader commercial real estate concerns. This transaction materially strengthens TRTX's financial foundation while providing fresh capital for growth in a challenging commercial real estate environment.

NEW YORK--(BUSINESS WIRE)-- TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) announced today that it closed on Friday, March 28, 2025 TRTX 2025-FL6, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation (“CRE CLO”). The Company placed $962.5 million of investment grade securities with institutional investors, providing TRTX with term financing on a non-mark-to-market, non-recourse basis. TRTX 2025-FL6 includes a 30-month reinvestment period, an advance rate of 87.5%, and a weighted average interest rate at issuance of Term SOFR plus 1.83%, before transaction costs. In connection with TRTX 2025-FL6, TRTX redeemed on March 17, 2025 TRTX 2019-FL3, a CRE CLO which had approximately $114.6 million of investment grade securities outstanding. The issuance of TRTX 2025-FL6 and the redemption of TRTX 2019-FL3 resulted in net cash proceeds to the Company of approximately $191.0 million for investment and other corporate purposes.

Goldman Sachs & Co. LLC acted as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2025-FL6. BofA Securities, Inc. and Wells Fargo Securities, LLC acted as co-lead managers and joint bookrunners, and Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., M&T Securities, Inc., Morgan Stanley & Co. LLC, Raymond James & Associates, Inc., Standard Chartered Bank and TPG Capital BD, LLC acted as co-managers.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT TRTX

TRTX is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate, which is the real estate investment platform of global alternative asset management firm TPG Inc. (NASDAQ: TPG). For more information regarding TRTX, visit https://www.tpgrefinance.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250328146804/en/

INVESTOR RELATIONS CONTACT



+1 (212) 405-8500

IR@tpgrefinance.com



MEDIA CONTACT



TPG RE Finance Trust, Inc.

Courtney Power

+1 (415) 743-1550

media@tpg.com

Source: TPG RE Finance Trust, Inc.

FAQ

What is the size and purpose of TRTX's 2025-FL6 CLO transaction?

TRTX 2025-FL6 is a $1.1 billion CRE CLO that provides TRTX with non-mark-to-market, non-recourse term financing through $962.5 million of investment grade securities placement.

What are the key terms of TRTX's 2025-FL6 CLO?

The CLO features a 30-month reinvestment period, 87.5% advance rate, and weighted average interest rate of Term SOFR plus 1.83% at issuance.

How much net cash proceeds did TRTX generate from the FL6 CLO issuance and FL3 redemption?

The combined transactions generated approximately $191.0 million in net cash proceeds for investment and corporate purposes.

When did TRTX redeem its 2019-FL3 CLO and what was its outstanding balance?

TRTX redeemed TRTX 2019-FL3 on March 17, 2025, which had approximately $114.6 million of investment grade securities outstanding.