By Cristal Cody
Tupelo, Miss., June 8 – Exantas Capital Corp. priced $514.1 million of floating-rate notes and preferred shares in a commercial real estate-backed collateralized loan obligation transaction, according to a market source and a company news release on Friday.
Exantas Capital Corp. 2018-RSO6, Ltd. priced $409 million of floating-rate notes at a weighted average cost of Libor plus 112 basis points in the deal, its largest CRE CLO issuance to date.
The CLO sold $290.5 million of class A notes at Libor plus 83 bps; $39.2 million of class B notes at Libor plus 115 bps; $30.2 million of class C notes at Libor plus 185 bps and $45 million of class D notes at Libor plus 250 bps.
The deal was also expected to include $17.9 million of class E subordinated notes, $21.9 million of class F subordinated notes and $69.4 million of preferred shares.
Exantas said it will retain the class E and F subordinated notes and the preferred shares.
The CLO has a 4.5-year weighted average life and a maturity of June 15, 2035.
Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC and Barclays were the placement agents.
Exantas Capital is the CLO manager.
The CLO is non-callable until July 2020. The issue does not have a reinvestment period.
The notes are collateralized by commercial mortgage loans originated by the company.
Exantas Capital is a New York-based real estate investment trust that originates, holds and manages commercial mortgage loans and other commercial real estate-related debt investments. The company is externally managed by Exantas Capital Manager Inc., formerly known as Resource Capital Manager, Inc., which is an indirect subsidiary of C-III Capital Partners LLC, a commercial real estate investment management and services company.
| Issuer: | Exantas Capital Corp. 2018-RSO6, Ltd.
|
| Amount: | $514.1 million
|
| Maturity: | June 15, 2035
|
| Securities: | Floating-rate and subordinated notes and preferred shares
|
| Structure: | CRE CLO
|
| Placement agents: | Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC and Barclays
|
| Manager: | Exantas Capital Corp.
|
| Call feature: | Two years
|
| Settlement date: | June 26
|
| Distribution: | Private
|
|
|
| Class A notes
|
| Amount: | $290.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 83 bps
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
| Kroll: AAA expected
|
|
|
| Class B notes
|
| Amount: | $39.2 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 115 bps
|
| Rating: | Kroll: AA- expected
|
|
|
| Class C notes
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| Amount: | $30.2 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 185 bps
|
| Rating: | Kroll: A- expected
|
|
|
| Class D notes
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| Amount: | $45 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 250 bps
|
| Rating: | Kroll: BBB- expected
|
|
|
| Class E notes
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| Amount: | $17.9 million
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| Securities: | Subordinated notes
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| Ratings: | Non-rated
|
|
|
| Class F notes
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| Amount: | $21.9 million
|
| Securities: | Subordinated notes
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| Ratings: | Non-rated
|
|
|
| Equity
|
| Amount: | $69.4 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
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