By Cristal Cody
Tupelo, Miss., Nov. 29 – TPG RE Finance Trust, Inc. closed on a new $1 billion commercial real estate collateralized loan obligation transaction, according to a market source and a news release on Thursday.
TRTX 2018-FL2 Issuer, Ltd./TRTX 2018-FL2 Issuer, LLC priced with a weighted average interest rate of Libor plus 145 basis points before transaction costs.
The CLO sold $505.1 million of class A floating-rate notes at Libor plus 113 bps; $85 million of class A-S floating-rate notes at Libor plus 145 bps; $62.5 million of class B floating-rate notes at Libor plus 165 bps; $66.3 million of class C floating-rate notes at Libor plus 230 bps; $76.3 million of class D floating-rate notes at Libor plus 270 bps; $48.8 million of class E floating-rate notes at Libor plus 400 bps; $28.8 million of class F floating-rate notes at Libor plus 500 bps and $127.5 million of preferred shares.
The CLO placed $795.1 million of investment-grade bonds with third party institutional investors.
Goldman Sachs & Co., LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were the bookrunners.
TPG RE Finance Trust Management, LP will manage the CRE CLO.
The notes are due Nov. 17, 2037. The CLO is non-callable until June 2020 and has a 24-month reinvestment period.
Proceeds will be used to retire borrowings under certain secured credit facilities and to fund new first mortgage loan investments.
The CLO is collateralized by 25 existing TRTX first mortgage loan investments, which included 23 pari passu participation interests and two whole loans.
The offering is the second CRE CLO the company has priced year to date.
TPG RE Finance Trust is a San Francisco-based commercial real estate finance company. The firm is externally managed by TPG RE Finance Trust Management, LP, a part of TPG Real Estate, which is the real estate investment platform of alternative investment firm TPG Global, LLC.
| Issuer: | TRTX 2018-FL2 Issuer, Ltd./TRTX 2018-FL2 Issuer, LLC
|
| Amount: | $1 billion
|
| Maturity: | Nov. 17, 2037
|
| Securities: | Notes and preferred shares
|
| Structure: | CRE CLO
|
| Weighted average rate: | Libor plus 145 bps
|
| Bookrunners: | Goldman Sachs & Co. LLC [sole structuring agent], J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Manager: | TPG RE Finance Trust Management, LP
|
| Call feature: | June 2020
|
| Settlement date: | Nov. 29
|
|
|
| Class A notes
|
| Amount: | $505.1 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 113 bps
|
| Ratings: | Moody’s: Aaa
|
| Kroll: AAA
|
|
|
| Class A-S notes
|
| Amount: | $85 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 145 bps
|
| Ratings: | Kroll: AAA
|
|
|
| Class B notes
|
| Amount: | $62.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 165 bps
|
| Ratings: | Kroll: AA-
|
|
|
| Class C notes
|
| Amount: | $66.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 230 bps
|
| Ratings: | Kroll: A-
|
|
|
| Class D notes
|
| Amount: | $76.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 270 bps
|
| Ratings: | Kroll: BBB-
|
|
|
| Class E notes
|
| Amount: | $48.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 400 bps
|
| Ratings: | Kroll: BB-
|
|
|
| Class F notes
|
| Amount: | $28.8 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 500 bps
|
| Ratings: | Kroll: B-
|
|
|
| Equity
|
| Amount: | $127.5 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
