BrightSpire Capital Announces Closing of $800 Million Commercial Real Estate CLO

NEW YORK–(BUSINESS WIRE) – BrightSpire Capital, Inc. (NYSE: BRSP) (“BrightSpire Capital” or the “Company”) today announced that the company has released BRSP 2021-FL1, a commercial real estate managed secured loan commitment of US $ 800 million Dollars (the “CRE CLO”). The CRE CLO is secured by shares in 31 variable rate mortgages secured by 41 properties with an initial advance of 83.75% and a weighted average coupon of L + 149% before transaction costs. Asset collateral is located in 11 states and consists mostly of apartment buildings, with the remainder being backed by offices and self-storage. The structure has a two year reinvestment period.

“The successful completion of our second managed CRE CLO and our first internally managed mortgage REIT is an important milestone for BrightSpire Capital, Inc. The transaction was well received by a broad investor base, which we believe is the strength of our recently renamed platform and business strategy . The liquidity generated from the transaction is invested in new issuing opportunities. We will continue to implement our business plan, which includes increased exposure to senior mortgage loans, ”said Andy Witt, Chief Operating Officer of BrightSpire Capital.

Matthew Heslin, BrightSpire Capital’s Head of Debt Capital Markets, added, “This transaction further diversifies our funding sources while generating liquidity, lowering our cost of capital and providing additional off-market, matched funding. We see CRE CLOs as an important source of funding for our business and expect to be a recurring issuer in the CRE CLO market in the future. ”

Wells Fargo Securities, LLC acted as the 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 Manager and Joint Bookrunner.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will any sale of these securities be made in any state or jurisdiction in which such offer, solicitation or sale is prior to registration or Qualified under the securities laws of such state or jurisdiction.

About BrightSpire Capital, Inc.

BrightSpire Capital, Inc. (NYSE: BRSP), formerly Colony Credit Real Estate, Inc. (NYSE: CLNC), is one of the largest publicly traded Commercial Real Estate (CRE) credit REITs specializing in origination, acquisition, and financing Management focuses a diversified portfolio consisting primarily of commercial loan investments and net rental real estate primarily in the United States. Commercial real estate bonds consist primarily of initial mortgage loans, which we expect to be the primary investment strategy. BrightSpire Capital is organized as a Maryland corporation and is taxed as a REIT for US federal income tax purposes. For more information about the company and its management and business, please visit www.brightspire.com.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of US securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, expected events or trends, and similar statements relating to matters that are not historical facts. In some instances, you may suspect forward-looking statements using forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “planet,” “expects,” “believes,” “estimates”, ” forecast ”or“ potentially ”or the negative of these words and phrases or similar words or phrases that are or indicate predictions of future events or trends and are not related solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and could cause actual results to differ materially from those expressed in the forward-looking statements. Factors that could cause actual results to differ materially from BrightSpire Capital’s expectations include, but are not limited to, the ability to generate additional liquidity and repatriate such proceeds in senior mortgage loans; the ability to create CRE-CLOs on a go-forward basis, also at a reduced cost of capital. The above list of factors is not exhaustive. Please refer to Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, and BrightSpire Capital’s other filings with the US Securities and Exchange Commission for more information about these and other factors. In addition, any of the above factors are also likely to be directly or indirectly affected by the ongoing effects of COVID-19, and investors are cautioned to keep essentially all of these statements and risks as a result of the ongoing effects of COVID-19. For more information about these and other factors, please refer to BrightSpire Capital’s reports from time to time with the Securities and Exchange Commission.

BrightSpire Capital cautions investors not to place undue reliance on forward-looking statements. The forward-looking statements speak only as of the date of this press release. BrightSpire Capital has no obligation, and BrightSpire Capital does not intend to update these forward-looking statements after the date of this press release or to reflect actual results or revised expectations.