Colony Credit Real Estate Closes $1.0 Billion Commercial Real Estate CLO
October 22 2019 - 4:05PM
Business Wire
Colony Credit Real Estate, Inc. (NYSE: CLNC) (“Colony Credit
Real Estate” or the “Company”) today announced that the Company
closed CLNC 2019-FL1, a $1.0 billion managed Commercial Real Estate
Collateralized Loan Obligation (the “CRE CLO”). The CRE CLO
accretively finances interests in 21 floating-rate mortgage loans
secured by 39 properties, with an 83.5% initial advance rate at a
weighted average coupon at issuance of LIBOR plus 1.59%, before
transaction costs. The loan collateral includes multifamily, office
and hospitality properties across 10 states and the District of
Columbia. The structure features a two-year reinvestment
period.
“The large-scale $1B benchmark achieved in our first CRE CLO
transaction demonstrates the strengths of our loan origination
business and team, capital markets capabilities and investor
relationships. With a lower cost of funds, higher advance rate and
managed reinvestment structure, this CRE CLO fortifies the
Company’s capital structure, improves the return on equity on our
retained interests, and allows the Company to continue to expand
its core financing business,” highlighted Kevin P. Traenkle, CEO
and President of Colony Credit Real Estate.
Wells Fargo Securities, LLC acted as sole structuring agent.
Wells Fargo Securities, LLC, Barclays Capital Inc., Citigroup
Global Markets Inc., Goldman Sachs & Co. 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 Colony Credit Real Estate, Inc.
Colony Credit Real Estate (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 senior mortgage loans,
mezzanine loans, preferred equity, debt securities and net leased
properties predominantly in the United States. Colony Credit Real
Estate is externally managed by a subsidiary of leading global real
estate and investment management firm, Colony Capital, Inc. Colony
Credit Real Estate is organized as a Maryland corporation that
intends to elect to be taxed as a REIT for U.S. federal income tax
purposes for its taxable year ending December 31, 2018. For
additional information regarding the Company and its management and
business, please refer to www.clncredit.com.
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Investor Relations Colony Credit Real Estate, Inc. Addo
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