Granite Point Mortgage Trust Inc. announced the closing of GPMT 2019-FL2, an $825.0 million managed Commercial Real Estate Collateralized Loan Obligation (“CRE CLO”), in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (as amended, the “Securities Act”).
The Company placed $653.8 million of investment grade securities with institutional investors, providing the Company with matched-term financing on a non-mark-to-market and non-recourse basis.
The CRE CLO features a two-year reinvestment period, an initial advance rate of 79.25% and a weighted average interest rate at issuance of LIBOR + 1.64%, before amortized transaction costs.
Jack Taylor, Chief Executive Officer of Granite Point Mortgage Trust, said, “The closing of our second CRE CLO transaction further diversifies our funding sources at an attractive cost of capital, while releasing borrowing capacity on our existing financing facilities. We are very pleased with this successful execution and the broad support from investors despite some challenging market conditions. Combined with our first CRE CLO, this transaction increases our matched-term, non-mark-to-market financing to approximately half of our current loan investment portfolio.”
J.P. Morgan Securities LLC acted as sole structuring agent, co-lead manager and joint bookrunner. Citigroup Global Capital Markets Inc., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC acted as co-lead managers and joint bookrunners.