TPG RE Finance Trust, Inc. Closes $1.25 Billion Commercial Real Estate CLO
NEW YORK–(BUSINESS WIRE) – TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) announced today that it has closed TRTX 2021-FL4, a $ 1.25 billion managed commercial property-backed loan commitment (” CRE CLO “). ). The company placed $ 1.04 billion in investment grade bonds with institutional investors and provided TRTX with fixed term, no market valuation and no recourse financing. TRTX 2021-FL4 includes a two-year reinvestment period, an advance of 83%, a “ramp” function of USD 308.9 million to finance future credit accruals and a weighted average interest rate when the LIBOR is issued plus 1.60% before transaction costs . The company received approximately $ 104.8 million in net cash proceeds from TRTX 2021-FL4 for investment and other corporate purposes.
As of January 2018, TRTX has issued four CRE-CLOs totaling $ 4.4 billion to support the company’s long-standing strategy of increasing the percentage of non-regressive debt without market valuation. After completing TRTX 2021-FL4, approximately 84% of the company’s debt financed is not in line with the market.
In the first quarter of 2021, the company completed or executed term sheets for six loans with a total commitment amount of $ 335.3 million. Essentially, everything is earmarked for an immediate contribution to TRTX 2021-FL4. These loans have a weighted average coupon of 3.61% and a weighted average estimated loan-to-value ratio of 76%.
Wells Fargo Securities, LLC acted as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2021-FL4. Barclays Capital Inc., BofA Securities, Inc., Goldman Sachs & Co. LLC, JP Morgan Securities LLC and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners.
This press release does not constitute an offer, solicitation or solicitation of an offer to buy, nor may any sale of these securities take place in any state or jurisdiction in which such offer, solicitation or sale may be made prior to registration or qualification under the law unlawful would be the securities laws of such state or jurisdiction.
ABOUT TRTX
TPG RE Finance Trust, Inc. is a commercial real estate finance company primarily focused on the issuance, purchase and management of initial mortgage loans and other commercial real estate related debt, largely backed by institutional grade real estate in primary and selected secondary markets in the U.S. The company is managed externally by TPG RE Finance Trust Management, LP, part of TPG Real Estate, TPG’s real estate investment platform. More information about TRTX can be found at www.tpgrefinance.com.