TPG RE Finance Trust, Inc. Provides Update
April 06 2020 - 4:43PM
Business Wire
Update on CRE Debt Securities Portfolio
On April 2, 2020, TPG RE Finance Trust, Inc. (NYSE: TRTX)
(“TRTX” or the “Company”) sold CRE debt securities with an
aggregate face amount of approximately $572 million (the
“Transaction”). These securities represented the entirety of the
Company’s CRE debt securities portfolio, other than those bonds
with a AAA rating. After satisfaction of approximately $429 million
under the Company’s secured revolving repurchase facilities, the
Company’s exposure to mark-to-market debt against its remaining CRE
debt securities portfolio was approximately $166 million, which
debt was secured by AAA rated CRE debt securities with an aggregate
face amount of approximately $209 million. As of April 6, 2020,
there are no outstanding and unpaid margin calls with respect to
any of the Company’s secured revolving repurchase facilities.
Together with other sales of CRE debt securities, the Company
has reduced its overall CRE debt securities portfolio from
approximately $961 million as of March 1, 2020 to approximately
$209 million as of April 6, 2020, and its associated liabilities
from approximately $825 million to approximately $166 million over
the same period. The Transaction, and other sales of CRE debt
securities since March 1, will cause the Company to recognize an
aggregate loss on sale of approximately $179 million, which is
estimated to result in a reduction in book value of approximately
$2.34 per share.
Update on Financing Arrangements
The Company has engaged Houlihan Lokey Inc. as an advisor to
explore financing and strategic alternatives. In addition, the
Company has received notices from certain of its lenders under
their respective securities and whole loan secured revolving
repurchase facilities indicating that they were reserving their
rights under their respective agreements with respect to certain
defaults, some of which no longer exist while others persist.
However, no lender has accelerated the Company’s obligations under
such agreements. The Company continues to work constructively with
its lenders and Houlihan Lokey to address these circumstances.
ABOUT TRTX
TPG RE Finance Trust, Inc. is a commercial real estate finance
company that focuses primarily on originating, acquiring, and
managing first mortgage loans and other commercial real
estate-related debt instruments secured by institutional properties
located in primary and select secondary markets in the United
States. The Company is externally managed by TPG RE Finance Trust
Management, L.P., a part of TPG Real Estate, which is the real
estate investment platform of TPG. TPG is a global alternative
asset firm with a 25-year history and more than $119 billion of
assets under management. For more information regarding TRTX, visit
www.tpgrefinance.com.
FORWARD-LOOKING STATEMENTS
The information contained in this earnings release contains
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are subject to various risks and uncertainties.
Forward-looking statements are generally identifiable by use of
forward‐looking terminology such as “may,” “will,” “should,”
“potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,”
“estimate,” “believe,” “could,” “project,” “predict,” “continue” or
other similar words or expressions. Forward-looking statements are
based on certain assumptions, discuss future expectations, describe
existing or future plans and strategies, contain projections of
results of operations, liquidity and/or financial condition or
state other forward‐looking information. Statements, among others,
relating to the Company’s ability to generate future growth and
deliver returns, successfully engage with its lenders or obtain
additional financing are forward-looking statements, and the
Company cannot assure you that TRTX will achieve such results. The
ability of TRTX to predict future events or conditions or their
impact or the actual effect of existing or future plans or
strategies is inherently uncertain, in particular due to the
uncertainties created by the COVID-19 pandemic. Although the
Company believes that such forward‐looking statements are based on
reasonable assumptions, actual results and performance in the
future could differ materially from those set forth in or implied
by such forward‐looking statements. You are cautioned not to place
undue reliance on these forward‐looking statements, which reflect
the Company’s views only as of the date of this earnings release.
Except as required by law, neither the Company nor any other person
assumes responsibility for the accuracy and completeness of the
forward‐looking statements appearing in this earnings release. The
Company does not undertake any obligation to update any
forward-looking statements contained in this press release as a
result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200406005826/en/
INVESTOR RELATIONS CONTACT (212) 405-8500
IR@tpgrefinance.com
MEDIA CONTACT TPG RE Finance Trust, Inc. Courtney Power
(415) 743-1550 media@tpg.com
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