Blackstone Mortgage Trust prices $1 billion CRE CLO; Voya, KCAP refinance 2015 vintage CLOs

By Cristal Cody

Tupelo, Miss., Dec. 21 – Blackstone Mortgage Trust, Inc. announced on Thursday that it priced and closed on a $1 billion static commercial real estate collateralized loan obligation, the largest of its kind post-financial crisis.

“The closing of BXMT 2017 FL-1 represents a significant expansion of our credit capacity and a further diversification of our funding sources,” Steve Plavin, president and chief executive officer of BXMT, said in the news release.

In other deal action, details emerged on two new refinanced CLOs.

Voya Alternative Asset Management LLC priced $526.5 million of notes in a refinancing and reset of a vintage 2015 transaction.

Also, KCAP Financial, Inc. refinanced $393.7 million of notes from a 2015 CLO.

Blackstone prices $1 billion

Blackstone Mortgage Trust’s BXMT 2017-FL1, Ltd. deal is the largest commercial real estate CLO issued post-financial crisis, according to the release.

The CLO transaction finances pari passu participation interests in 31 of BXMT's portfolio loans at an effective advance rate of 81.75% with a weighted average coupon at issuance of Libor plus 1.21 basis points.

The securities are due June 15, 2035.

Wells Fargo Securities, LLC was the structuring agent.

Blackstone Mortgage Trust will manage the CLO, its first CRE CLO transaction.

The transaction is backed by commercial mortgage assets.

Blackstone Mortgage Trust is a real estate finance company that originates senior loans collateralized by commercial real estate in North America and Europe. The New York-based firm is externally managed by BXMT Advisors LLC, a subsidiary of investment firm Blackstone.

Voya refinances $526.5 million

Voya Alternative Asset Management priced $526.5 million of notes in a refinancing and reset of a vintage 2015 CLO offering, according to a notice on Monday.

Voya CLO 2015-1, Ltd./Voya CLO 2015-1 LLC priced $386.75 million of class A-1-R floating-rate notes at Libor plus 90 bps in the senior tranche.

Credit Suisse Securities (USA) LLC arranged the offering.

The maturity on the notes was extended to Jan. 18, 2029 from the original April 19, 2027 maturity.

The original $612.5 million CLO priced March 4, 2015. The CLO sold $390 million of class A-1 floating-rate notes at Libor plus 148 bps.

Voya has priced four new CLOs and refinanced three vintage CLOs year to date.

In 2016, the CLO manager placed four new CLOs and refinanced two vintage transactions.

The firm is an affiliate of New York City-based Voya Investment Management LLC.

KCAP reprices $393.7 million

KCAP Financial refinanced $393.7 million of notes due April 22, 2027 from the vintage Catamaran CLO 2015-1 Ltd. transaction, according to a market source and a news release on Thursday.

Credit Suisse Securities (USA) LLC was the refinancing placement agent.

The CLO is managed by Trimaran Advisors Management, LLC.

An affiliate is expected to retain a vertical strip of the refinanced securities to comply with U.S. risk retention regulations, according to the release.

The company originally priced the $463.8 million CLO on March 31, 2015.

Trimaran Advisors has refinanced three CLOs in 2017.

The portfolio company of business development company KCAP Financial is based in New York.

© 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.