Exantas Capital Corp. Announces Pricing of $514.2 Million CLO Backed by Self-Originated Commercial Mortgage Loans
June 07 2018 - 6:56PM
Exantas Capital Corp. (NYSE:XAN) (the “Company”) (formerly
known as Resource Capital Corp.) announced that its newly formed
subsidiary, Exantas Capital Corp. 2018-RSO6,
Ltd. (the “Issuer”), will issue $404.9 million of
non-recourse, floating-rate notes (“Offered Notes,” the
“Securities” or the “Offering”) at a weighted average cost of
LIBOR+112 basis points. The Offered Notes include: $290.5
million of Class A Notes, which were rated Aaa by
Moody’s Investors Service, Inc. and AAA by Fitch Ratings Inc.
and Kroll Bond Rating Agency, Inc. (“KBRA”) and will be issued at a
coupon of LIBOR+83 basis points; $39.2 million of Class B
Notes, which were rated AA- by KBRA and will be issued at a coupon
of LIBOR+115 basis points; $30.2 million of Class C Notes, which
were rated A- by KBRA and will be issued at a coupon of LIBOR+185
basis points; and $45.0 million of Class D Notes, which were rated
BBB- by KBRA and will be issued at a coupon of LIBOR+250 basis
points. The Offered Notes are collateralized by floating rate
commercial real estate first mortgage loans originated by the
Company with an aggregate principal balance of $514.2 million.
The Company will retain the Class E and Class F subordinated notes
and the preferred shares in the transaction, which is expected to
close on or about June 26, 2018, subject to satisfaction of
customary closing conditions.
Robert C. Lieber, Chief Executive Officer
of the Company, stated, “We are very pleased to have executed the
Company’s largest CRE CLO issuance. This transaction is more
than 35% larger than its CLO issuance completed last June, which
was the Company’s largest post-crisis issuance at the time.”
Matthew J. Stern, President of the Company,
added, “The transaction demonstrates strong reception in the debt
markets for the Company’s CLO offerings with significant demand and
corresponding favorable pricing.”
The Securities will not be registered under the
Securities Act of 1933, as amended (the “Securities Act”), and may
not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. The Offering was made privately in transactions
exempt from the registration requirements of the Securities Act.
This press release is not an offer to sell any securities of the
Company or the issuer and is not a solicitation of an offer to buy
such securities. This press release includes statements that may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that are difficult
to predict, many of which are beyond management's control. Factors
that can affect future results are discussed in the documents filed
by the Company from time to time with the Securities and
Exchange Commission.
About Exantas Capital Corp.
Exantas Capital Corp. is a real estate
investment trust that is primarily focused on originating, holding
and managing commercial mortgage loans and other commercial real
estate-related debt investments. The Company is externally managed
by Exantas Capital Manager Inc. (formerly known as Resource Capital
Manager, Inc.), which is an indirect wholly-owned subsidiary
of C-III Capital Partners LLC, a leading commercial real
estate investment management and services company engaged in a
broad range of activities.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of
1934, as amended. Such forward-looking statements can generally be
identified by our use of forward-looking terminology such as “may,”
“trend,” “will,” “continue,” “expect,” “intend,” “anticipate,”
“estimate,” “believe,” “look forward” or other similar words or
terms. Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from the
expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements.
Factors that can affect future results are discussed in the
documents filed by the Company from time to time with
the Securities and Exchange Commission. The Company undertakes
no obligation to update or revise any forward-looking statement to
reflect new or changing information or events after the date hereof
or to reflect the occurrence of unanticipated events, except as may
be required by law.
For more information, please visit the Company’s
website at www.exantas.com or contact investor
relations at IR@exantas.com.
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