BrightSpire Capital Announces Pricing of $675 Million BRSP 2024-FL2 Commercial Real Estate CLO and the Redemption of CLNC 2019-FL1
August 09 2024 - 7:00AM
Business Wire
BrightSpire Capital, Inc. (NYSE: BRSP) (“BrightSpire Capital” or
the “Company”) announced that the Company priced BRSP 2024-FL2, a
$675 million managed Commercial Real Estate Collateralized Loan
Obligation (the “2024-FL2 CLO”) on August 1, 2024. The transaction
is scheduled to close on August 15, 2024. The 2024-FL2 CLO is
collateralized by interests in 22 first-lien floating-rate
mortgages secured by 25 properties, with an 86.50% initial advance
rate at a weighted average coupon at issuance of Term SOFR+2.47%,
before transaction costs.
The asset collateral is located across 9 states and primarily
consists of multifamily properties (74.3%), mixed-use (13.8%),
hospitality (7.1%), office (2.8%) and industrial (2.0%). All loans
were originated by subsidiaries of the Company. The structure
features a two-year reinvestment period and available proceeds of
approximately $85 million to be used within a six-month ramp up
period from closing.
Moody's Investor Service, Inc. and Fitch Ratings, Inc. assigned
a “Aaa” and “AAA” rating, respectively, to the seniormost
certificates, with Fitch Ratings, Inc. providing ratings to the
remaining classes of the transaction.
“The successful execution of our third managed CRE CLO evidences
the strength of the platform and business strategy. The transaction
was well received by a broad base of investors. We look forward to
investing the liquidity generated from the transaction in new loan
originations opportunities,” highlighted Andy Witt, President and
Chief Operating Officer of BrightSpire Capital.
Matthew Heslin, Chief Credit Officer and Head of Debt Capital
Markets at BrightSpire Capital, added, “This transaction further
diversifies our funding sources, while generating valuable
liquidity and providing additional non-recourse, non
mark-to-market, match term financing; the transaction serves as a
cornerstone as we pivot toward deploying capital through new loan
originations. As a seasoned and respected issuer and collateral
manager, CRE CLOs will continue to be an important financing source
for our business moving forward.”
Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
acted as co-structuring agents. Morgan Stanley & Co. LLC, Wells
Fargo Securities, LLC, Barclays Capital Inc. and Citigroup Global
Markets Inc. acted as co-lead managers and joint bookrunners.
The Company also announced it will redeem its CLNC 2019-FL1
securitization on August 19, 2024.
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 BrightSpire Capital, Inc.
BrightSpire Capital, Inc. (NYSE: BRSP), formerly Colony Credit
Real Estate, Inc. (NYSE: CLNC), is one of the largest publicly
traded commercial real estate (CRE) credit REITs, focused on
originating, acquiring, financing and managing a diversified
portfolio consisting primarily of CRE debt investments and net
leased properties predominantly in the United States. CRE debt
investments primarily consist of first mortgage loans, which we
expect to be the primary investment strategy. BrightSpire Capital
is organized as a Maryland corporation and taxed as a REIT for U.S.
federal income tax purposes. For additional information regarding
the Company and its management and business, please refer to
www.brightspire.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward- looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as “may,” “will,” “should,”
“expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” or “potential” or the negative of these
words and phrases or similar words or phrases which are predictions
of or indicate future events or trends and which do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond our control, and may cause
actual results to differ significantly from those expressed in any
forward- looking statement. Factors that could cause actual results
to differ materially from BrightSpire Capital’s expectations
include, but are not limited to, the ability to generate additional
liquidity and repatriate such proceeds in senior mortgage loans;
the ability to issue CRE CLO’s on a go forward basis, including at
a reduced cost of capital. The foregoing list of factors is not
exhaustive. Additional information about these and other factors
can be found in Part I, Item 1A of the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2023, as well as
in BrightSpire Capital’s other filings with the U.S. Securities and
Exchange Commission. Moreover, each of the factors referenced above
are likely to also be impacted directly or indirectly by the
ongoing impact of COVID-19 and investors are cautioned to interpret
substantially all of such statements and risks as being heightened
as a result of the ongoing impact of the COVID-19. Additional
information about these and other factors can be found in
BrightSpire Capital’s reports filed from time to time with the
Securities and Exchange Commission.
BrightSpire Capital cautions its investors not to unduly rely on
any forward-looking statements. The forward-looking statements
speak only as of the date of this press release. BrightSpire
Capital is under no duty to update any of these forward-looking
statements after the date of this press release, nor to conform
prior statements to actual results or revised expectations, and
BrightSpire Capital does not intend to do so.
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Investor Relations BrightSpire Capital, Inc. Addo
Investor Relations Anne McGuinness 310-829-5400 brsp@addo.com
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