NEW
YORK, July 12, 2023 /PRNewswire/ -- Lument
Finance Trust, Inc. (NYSE: LFT) ("LFT") today announced the closing
of a $386 million commercial real
estate financing (the "LMF 2023-1 Financing"). The LMF 2023-1
Financing is LFT's fourth commercial real estate portfolio
financing transaction since LFT's inception.
In connection with the LMF 2023-1 Financing, approximately
$270 million of investment
grade-rated loans were placed with a private lender and
approximately $47 million of
investment grade-rated notes (collectively, the "Senior Debt") were
issued and sold to an affiliate of LFT's external manager, Lument
Investment Management. A consolidated subsidiary of LFT retained
subordinate interests in the issuing vehicle of approximately
$69 million. The Senior Debt has an
initial weighted average spread of approximately 314 basis points
over one-month SOFR, excluding fees and transaction costs. The
Senior Debt matures on the payment date in July 2032, unless it is sooner repaid or redeemed
in accordance with its terms.
The initial collateral pool securing the Senior Debt consists of
25 first lien floating rate mortgage loans and participations in
first lien floating rate mortgage loans secured by 32 multifamily
properties located across the United
States. The collateral was acquired by an LFT subsidiary at
an aggregate discount to par of approximately 1.5% plus interest
accrued on the collateral as of July 12,
2023. The weighted average collateral spread was
approximately 365 basis points over one-month SOFR. All the
mortgage assets were originated by an affiliate of Lument
Investment Management. LMF 2023-1 provides for a 24-month
reinvestment period that allows principal proceeds from repayments
of the mortgage assets to be reinvested in qualifying replacement
mortgage assets, subject to certain conditions.
James Flynn, Chief Executive
Officer of LFT, said, "The closing of the LMF 2023-1 Financing
represents another positive milestone in the execution of LFT's
business plan. The match-term, non-recourse features, combined with
the managed nature of the private transaction, provides for
incremental financing which allows us to further grow LFT's
capacity to deploy investment capital into target assets consistent
with our existing strategy."
All classes of the Senior Debt were rated by an NRSRO-designated
credit ratings agency. The securities offered and sold in
connection with the LMF 2023-1 Financing were offered and sold in a
transaction exempt from the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act"), and such
securities may not be offered or sold in the United States absent an applicable
exemption from the registration requirements of the Securities Act
and applicable state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of, any 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 such state or jurisdiction.
About Lument Finance Trust, Inc.
Lument Finance Trust, Inc. ("LFT") is a Maryland corporation focused on investing in,
financing and managing a portfolio of commercial real estate debt
investments. LFT primarily invests in transitional floating
rate commercial mortgage loans with an emphasis on middle-market
multi-family assets. LFT is externally managed and advised by
Lument Investment Management, LLC, a Delaware limited
liability company.
Forward Looking Statements
Certain statements included in this press release
constitute forward-looking statements intended to qualify for the
safe harbor contained in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act, as
amended. Forward-looking statements are subject to risks and
uncertainties. You can identify forward-looking statements by use
of words such as "believe," "expect," "anticipate," "project,"
"estimate," "plan," "continue," "intend," "should," "may," "will,"
"seek," "would," "could," or similar expressions or other
comparable terms, or by discussions of strategy, plans or
intentions. Forward-looking statements are based on the Company's
beliefs, assumptions and expectations of its future performance,
taking into account all information currently available to the
Company on the date of this press release or the date on which such
statements are first made. Actual results may differ from
expectations, estimates and projections. You are cautioned not to
place undue reliance on forward-looking statements in this press
release and should consider carefully the factors described in Part
I, Item IA "Risk Factors" in the Company's Annual Report on Form
10-K for the year ended December 31,
2022, which is available on the SEC's website at
www.sec.gov, and in other current or periodic filings with
the SEC, when evaluating these forward-looking statements.
Forward-looking statements are subject to substantial risks and
uncertainties, many of which are difficult to predict and are
generally beyond the Company's control. Except as required by
applicable law, the Company disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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SOURCE Lument Finance Trust, Inc.