Franklin BSP Realty Trust, Inc. Announces Closing Of ~$900M Collateralized Loan Obligation
Portfolio Pulse from Benzinga Newsdesk
Franklin BSP Realty Trust, Inc. (NYSE:FBRT) has closed BSPRT 2023-FL10, a $900 million Commercial Real Estate Collateralized Loan Obligation (CLO). This is FBRT's tenth CLO since June 2017. The CLO has an 18-month reinvestment period, an initial advance rate of 85.5%, and a weighted average interest rate of Term SOFR+275%. J.P. Morgan, LLC was the sole structuring agent, while Wells Fargo Securities, LLC and Barclays Capital Inc. were co-lead managers and joint bookrunners.
September 28, 2023 | 8:33 pm
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FBRT has successfully closed a $900 million CLO, which could increase its financial flexibility and capacity. The involvement of major financial institutions like J.P. Morgan, Wells Fargo, and Barclays could also boost investor confidence.
The successful closing of a large CLO like this one can be seen as a positive sign of FBRT's financial management and strategy. It could increase the company's financial flexibility by converting a significant amount of warehouse liabilities into a non-recourse, non-mark-to-market liability structure. The involvement of major financial institutions in the deal could also serve to boost investor confidence in FBRT.
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