BrightSpire Capital has closed a $955m (£703.3m) commercial real estate (CRE) collateralised loan obligation (CLO).
The CLO, named BRSP 2026-FL3, is backed by 29 first-lien floating-rate mortgages secured by 30 properties, with an 87.25 per cent initial advance rate. The properties are spread across 11 states, with around 95 per cent being multifamily residential and five per cent mixed-use.
According to BrightSpire, the total size of the CLO is $955m, while around $833.2m of investment-grade securities were sold to institutional investors.
Read more: Charlotte Vincent: Bringing CLOs to the People’s Pension
“The successful execution of our fourth managed CRE CLO continues to highlight the strength of the platform and business strategy,” said Andy Witt, president and chief operating officer of BrightSpire Capital. “This transaction was well received by a broad base of investors.”
The US-based commercial credit real estate investment trust stated that both Moody’s and Kroll Bond Rating Agency (KBRA) have assigned an “Aaa” and “AAA” rating, respectively, to the senior tranches within the CLO. KBRA rated the remaining classes of the transaction.
The CLO has a reinvestment period of 30 months, and $98m of available proceeds can be deployed over six months after closing.
Read more: Mizuho EMEA prices KKR’s CLO Avoca XXXV
“We continue to diversify our funding sources, generating valuable liquidity, and expand our balance sheet’s non-recourse, non-mark-to-market, match term financing,” said Matthew Heslin, chief credit officer and head of debt capital markets at BrightSpire Capital. “CRE CLOs will continue to be an important financing source for our business, and we anticipate additional issuances in the periods ahead.”
Wells Fargo Securities acted as sole structuring agent for the CLO, while Wells Fargo Securities, Citigroup Global Markets and Morgan Stanley & Co acted as co-lead managers and joint bookrunners, and Barclays Capital acted as co-manager.
Read more: Fidelity expands ETF range with twin CLO launches
