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BrightSpire Capital Closes $800MM Commercial Real Estate CLO

July 21, 2021, 08:00 AM
Filed Under: Real Estate

BrightSpire Capital closed BRSP 2021-FL1, an $800 million managed Commercial Real Estate Collateralized Loan Obligation (the “CRE CLO”). The CRE CLO is collateralized by interests in 31 floating-rate mortgages secured by 41 properties, with an 83.75% initial advance rate at a weighted average coupon at issuance of L+149%, before transaction costs. The asset collateral is located across 11 states and primarily consists of multifamily properties, with the remainder collateralized by office and self-storage. The structure features a two-year reinvestment period.

“The successful execution of our second managed CRE CLO and our first as an internally managed mortgage REIT is an important milestone for BrightSpire Capital, Inc. The transaction was well received by a broad base of investors, which we believe evidences the strength of our recently rebranded platform and business strategy. The liquidity generated from the transaction will be invested in new originations opportunities. We will continue to execute our business plan, which includes increasing exposure to senior mortgage loans,” highlighted Andy Witt, Chief Operating Officer of BrightSpire Capital.

Matthew Heslin, Head of Debt Capital Markets at BrightSpire Capital, added, “This transaction further diversifies our funding sources, while generating liquidity, reducing our cost of capital and providing additional non mark-to-market, match term financing. We view CRE CLOs as an important financing source for our business and anticipate being a repeat issuer in the CRE CLO market going forward.”

Wells Fargo Securities, LLC acted as sole structuring agent. Wells Fargo Securities, LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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