By Cristal Cody
Tupelo, Miss., April 4 – Exantas Capital Corp. priced a $687.2 million commercial real estate-backed collateralized loan obligation, according to a market source and a company news release on Thursday.
Exantas Capital Corp. 2019-RSO7, Ltd. sold $585.8 million of non-recourse floating-rate notes at a weighted average cost of Libor plus 132 basis points.
The CLO priced $390 million of class A notes (Aaa/DBRS: AAA) at Libor plus 100 bps, $70.4 million of class A-S notes (DBRS: AAA) at Libor plus 150 bps, $33.5 million of class B notes (DBRS: AA) at Libor plus 170 bps, $42.9 million of class C notes (DBRS: A) at Libor plus 205 bps and $49 million of class D notes (DBRS: BBB) at Libor plus 270 bps.
The deal also included $33.4 million of class E subordinated notes, $18.8 million of class F subordinated notes and $48.9 million of preferred shares.
Exantas said it will retain the class E and F subordinated notes and preferred shares and intends to purchase $10 million of the class D notes after closing.
Wells Fargo Securities, LLC, Barclays and J.P. Morgan Securities LLC were the placement agents.
The CLO has a final maturity of April 17, 2036.
The issue has a two-year non-call period. The CRE CLO does not have a reinvestment period.
The notes are collateralized by floating-rate 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., an indirect subsidiary of C-III Capital Partners LLC, a commercial real estate investment management and services company.
| Issuer: | Exantas Capital Corp. 2019-RSO7, Ltd.
|
| Amount: | $687.2 million
|
| Maturity: | April 17, 2036
|
| Securities: | Floating-rate notes, subordinated notes and preferred shares
|
| Structure: | CRE CLO
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| Placement agents: | Wells Fargo Securities, LLC, Barclays and J.P. Morgan Securities LLC
|
| Manager: | Exantas Capital Corp.
|
| Call feature: | Two years
|
| Announcement date: | April 4
|
| Settlement date: | April 17
|
|
|
| Class A notes
|
| Amount: | $390 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 100 bps
|
| Ratings: | Moody’s: Aaa
|
| DBRS: AAA
|
|
|
| Class A-S notes
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| Amount: | $70.4 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 150 bps
|
| Ratings: | DBRS: AAA
|
|
|
| Class B notes
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| Amount: | $33.5 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 170 bps
|
| Ratings: | DBRS: AA
|
|
|
| Class C notes
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| Amount: | $42.9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | Libor plus 205 bps
|
| Ratings: | DBRS: A
|
|
|
| Class D notes
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| Amount: | $49 million
|
| Securities: | Floating-rate notes
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| Coupon: | Libor plus 270 bps
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| Ratings: | DBRS: BBB
|
|
|
| Class E notes
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| Amount: | $33.4 million
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| Securities: | Subordinated notes
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| Ratings: | DBRS: BB
|
|
|
| Class F notes
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| Amount: | $18.8 million
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| Securities: | Subordinated notes
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| Ratings: | DBRS: B
|
|
|
| Equity
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| Amount: | $48.9 million
|
| Securities: | Preferred shares
|
| Ratings: | Non-rated
|
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