TPG RE Finance Trust, Inc. Closes $1.25 Billion Commercial Real Estate CLO

Rhea-AI Summary

TPG RE Finance Trust (NYSE: TRTX) announced the closing of TRTX 2021-FL4, a $1.25 billion Commercial Real Estate Collateralized Loan Obligation (CRE CLO). The deal secured $1.04 billion in investment-grade bonds, enabling non-recourse, non-mark-to-market financing. With a two-year reinvestment period, the CLO features a ramp for future loan originations and an interest rate of LIBOR plus 1.60%. TRTX has now issued four CRE CLOs totaling $4.4 billion since January 2018, enhancing its non-recourse debt to approximately 84% of funded debt.

Positive

• Closed TRTX 2021-FL4, raising $1.25 billion in CRE CLO financing.
• Secured $1.04 billion in investment-grade bonds for non-recourse funding.
• Enhanced non-recourse debt to approximately 84%, supporting financial stability.
• Received net cash proceeds of $104.8 million for investment and corporate purposes.

Negative

• None.

TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) announced today that it closed TRTX 2021-FL4, a $1.25 billion managed Commercial Real Estate Collateralized Loan Obligation ("CRE CLO"). The Company placed $1.04 billion of investment grade bonds with institutional investors, providing TRTX with term financing on a non-mark-to-market, non-recourse basis. TRTX 2021-FL4 includes a two-year reinvestment period, an advance rate of 83%, a $308.9 million “ramp” feature to finance future loan originations, and a weighted average interest rate at issuance of LIBOR plus 1.60%, before transaction costs. The Company received net cash proceeds from TRTX 2021-FL4 of approximately $104.8 million for investment and other corporate purposes.

Since January 2018, TRTX has issued four CRE CLOs totaling $4.4 billion in support of the Company’s long-standing strategy of increasing its percentage of non-recourse, non-mark-to-market liabilities. Following the closing of TRTX 2021-FL4, approximately 84% of the Company’s funded debt is non-mark-to-market.

During the first quarter of 2021, the Company closed or executed term sheets for six loans with an aggregate commitment amount of $335.3 million, substantially all of which is slated for prompt contribution to TRTX 2021-FL4. These loans have a weighted average coupon of 3.61% and a weighted average estimated as-is loan-to-value ratio of 76%.

Wells Fargo Securities, LLC acted as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2021-FL4. Barclays Capital Inc., BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners.

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

TPG RE Finance Trust, Inc. is a commercial real estate finance company that focuses primarily on originating, acquiring, and managing first mortgage loans and other commercial real estate‐related debt instruments secured largely by institutional-quality 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 TPG. For more information regarding TRTX, visit www.tpgrefinance.com.

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FAQ

What is TRTX 2021-FL4?

TRTX 2021-FL4 is a $1.25 billion Commercial Real Estate Collateralized Loan Obligation closed by TPG RE Finance Trust.

How much capital did TRTX secure from TRTX 2021-FL4?

TPG RE Finance Trust secured $1.04 billion in investment-grade bonds from TRTX 2021-FL4.

What percentage of TRTX's funded debt is non-recourse after the new CLO?

Post-closure of TRTX 2021-FL4, approximately 84% of TRTX's funded debt is non-mark-to-market.

What is the interest rate for TRTX 2021-FL4?

The interest rate for TRTX 2021-FL4 is LIBOR plus 1.60% before transaction costs.

How much cash did TRTX receive from the CLO for future investments?

TPG RE Finance Trust received approximately $104.8 million in net cash proceeds from TRTX 2021-FL4 for investment and corporate purposes.