Granite Point Mortgage prices $826 million CRE CLO; PGIM offers €415.1 million CLO

By Cristal Cody

Tupelo, Miss., May 10 – In new primary action, Granite Point Mortgage Trust Inc. closed on an $826 million CRE CLO deal.

The CLO priced with a weighted average interest rate of Libor plus 127 basis points.

“The closing of our inaugural $826 million CLO transaction is a major milestone for our company and a significant additional step in executing our strategy of diversifying our financing sources and reducing our cost of funds,” Jack Taylor, chief executive officer of Granite Point Mortgage Trust, said in a news release. “This transaction attractively finances about a third of our investment portfolio as of March 31, 2018, while providing matched-term, non-recourse and non-mark-to-market funding.”

Coming up in the broadly syndicated market, PGIM, Inc. plans to price €415.1 million of notes in a new euro-denominated CLO deal.

Granite Point closes CLO

Granite Point Mortgage Trust priced and closed on $826 million of notes in the GPMT 2018-FL1, Ltd. CRE CLO transaction, according to a market source and news release.

The deal included $442.2 million of class A floating-rate notes; $52.7 million of class A-S floating-rate notes; $49.6 million of class B floating-rate notes; $47.5 million of class C deferrable floating-rate notes; $68.2 million of class D deferrable floating-rate notes; $35.1 million of class E deferrable floating-rate notes; $37.2 million of class F deferrable floating-rate notes and $94 million of preferred shares. Additional pricing terms were not immediately available.

Wells Fargo Securities, LLC was the structuring lead. Wells Fargo, Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC were bookrunners.

The notes are due Nov. 21, 2025.

Granite Point Mortgage Trust is a New York City-based firm that originates, invests in and manages senior floating-rate commercial mortgage loans and other debt. The company is externally managed by Pine River Capital Management LP.

PGIM offers €415.1 million

PGIM plans to price €415.1 million of notes due July 15, 2031 in the Dryden 62 Euro CLO 2017 BV deal, according to a market source.

The offering includes €240 million of class A floating-rate notes (//AAA); €5 million of class B-1 floating-rate notes (//AA); €37 million of class B-3 fixed-rate notes (//AA); €27 million of class C floating-rate notes (//A); €20 million of class D floating-rate notes (//BBB); €29 million of class E floating-rate notes (//BB); €13 million of class F floating-rate notes (//B-) and €44.1 million of subordinated notes.

Barclays is the placement agent.

PGIM is an investment management firm and part of Newark, N.J.-based Prudential Financial Inc.

© 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.