Franklin BSP Realty Trust closes $1.024 billion commercial real estate securitization
Franklin BSP Realty Trust's subsidiary closed a securitization of about $1.024 billion in commercial real estate mortgages on September 26, 2024, selling about $886 million of the notes in a private placement. The company said proceeds will repay borrowings under its current credit facilities, fund future loans and investments, and support general corporate purposes, and it intends to hold the portfolio to maturity as financing on its balance sheet.
- Offered notes total about $886 million; the target pool balance is about $1.024 billion, including a $100 million ramp-up period for multifamily loans.
- Class A notes of $558,340,000 carry an initial rate of 1.638% plus 1 Month CME Term SOFR; the notes mature July 15, 2039.
- Notes are limited recourse, payable solely from portfolio cash flow and other company assets.
- Interest is payable monthly beginning October 15, 2024.