Resource Capital Corp. Announces Pricing of $377 Million CLO Backed by Self-Originated Commercial Mortgage Loans
27 Juin 2017 - 12:37AM
Resource Capital Corp. (NYSE:RSO) (the “Company”) announced
that its newly formed subsidiary, Resource Capital
Corp. 2017-CRE5, Ltd. (the “Issuer”), will
issue $251.5 million of non-recourse, floating-rate notes
(“Offered Notes,” the “Securities” or the “Offering”) at a weighted
average cost of LIBOR+103 basis points. The Offered
Notes include $203.42 million of Class A Notes, which were
rated Aaa by Moody’s Investors Services, Inc. and will be issued at
a coupon of LIBOR+80 basis points and $48.03 million of Class B
Notes, rated Baa3 by Moody’s, which will be issued at a coupon of
LIBOR+ 200 basis points. The Offered Notes are collateralized by
floating rate commercial real estate first mortgage loans
originated by the Company with a principal balance of $376.7
million. The Company will retain the subordinated notes and the
preferred shares in the transaction, which is expected to close on
or about July 13, 2017, subject to the satisfaction of customary
closing conditions.
Robert C. Lieber, Chief Executive Officer of RSO said, “We are
very pleased to have executed this transaction at the tightest
level of any post-crisis CRE CLO. We believe that the record
tight print of RSO 2017-CRE5 is market recognition of the Company’s
ability to originate and structure high-quality loans. When this
CLO closes, RSO will have term financed $1.7 billion of our
self-originated whole loans through the capital markets. This
transaction demonstrates that RSO has a platform that resonates
with market participants.”
The Securities will not be registered under the Securities Act
of 1933 (the “Securities Act”), as amended, 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 soliciting 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 and 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.
RSO 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 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. More information
about RSO can be found at the company's website
at www.resourcecapitalcorp.com or by contacting Marketing
and Investor Relations at pkamdar@resourcecapitalcorp.com.
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.
Contact:
Resource Capital Corp.
www.resourcecapitalcorp.com
pkamdar@resourcecapitalcorp.com
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