NEW YORK - BrightSpire Capital, Inc. (NYSE: BRSP), a commercial real estate credit REIT, has priced a $675 million Commercial Real Estate Collateralized Loan Obligation (CRE CLO), the company announced on August 1, 2024. The closing of the transaction, known as BRSP 2024-FL2, is expected on August 15, 2024.
The 2024-FL2 CLO is backed by 22 first-lien floating-rate mortgages secured by 25 properties across nine states, with a focus on multifamily properties, which make up 74.3% of the collateral. The initial advance rate is 86.50%, and the weighted average coupon at issuance is Term SOFR+2.47%, excluding transaction costs.
This CLO features a two-year reinvestment period and includes approximately $85 million in available proceeds, to be utilized within a six-month ramp-up period following the closing. Moody's (NYSE:MCO) Investor Service and Fitch Ratings have assigned ratings of 'Aaa' and 'AAA' to the senior-most certificates, with Fitch Ratings also rating the remaining classes.
Andy Witt, President and Chief Operating Officer of BrightSpire, expressed confidence in the CLO as a testament to the company's strong platform and business strategy, noting the broad base of investors it attracted. Matthew Heslin, Chief Credit Officer and Head of Debt Capital Markets, emphasized the transaction's role in diversifying funding sources and providing non-recourse, non-mark-to-market, match term financing.
Morgan Stanley & Co (NYSE:MS). LLC and Wells Fargo Securities, LLC served as co-structuring agents for the deal, with Barclays Capital Inc. and Citigroup Global Markets Inc. also acting as co-lead managers and joint bookrunners.
Furthermore, BrightSpire Capital plans to redeem its CLNC 2019-FL1 securitization on August 19, 2024.
The information in this article is based on a press release statement and is intended for general informational purposes only.
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