NEW YORK, Sept. 8, 2020 /PRNewswire/ -- Exantas Capital
Corp. (NYSE: XAN) (the "Company") announced that its newly
formed subsidiaries, Exantas Capital Corp. 2020-RSO9,
Ltd. (the "Issuer") and Exantas Capital Corp. 2020-RSO9, LLC
(together with the Issuer, the "Co-Issuers"), will
issue $245.8 million of non-recourse, floating-rate notes
("Offered Notes," the "Securities" or the "Offering") at a weighted
average cost of the one-month London Interbank Offered Rate
("LIBOR")+313 basis points.
Mark Fogel, President and CEO of
the Company, stated, "We believe that the successful issuance of
these notes is a positive indicator of a market that is starting to
stabilize, and our ability as a CLO manager to garner investor
interest. We are pleased to again have this source of financing to
position us for loan originations at the appropriate time."
The Offered Notes include:
- $158.9 million of Class A Notes,
which were rated Aaa(sf) by Moody's Investors Service, Inc., and
AAA(sf) by DBRS, Inc.("DBRS Morningstar") and will be issued at a
coupon of LIBOR+250 basis points;
- $26.7 million of Class A-S
Notes, which were rated AAA(sf) by DBRS Morningstar and will be
issued at a coupon of LIBOR+350 basis points;
- $16.7 million of Class
B Notes, which were rated AA(low)(sf) by DBRS Morningstar and will
be issued at a coupon of LIBOR+390 basis points;
- $20.8 million of Class C
Notes, which were rated A(low)(sf) by DBRS Morningstar and will be
issued at a coupon of LIBOR+425 basis points; and
- $22.7 million of Class D
Notes, which were rated BBB(low)(sf) by DBRS Morningstar and will
be issued at a coupon of LIBOR+500 basis points.
The transaction is expected to close by September 30, 2020,
subject to satisfaction of customary closing conditions. The
Offered Notes are collateralized by floating-rate commercial real
estate first mortgage loans originated or acquired by the Company
with an aggregate outstanding principal balance
of approximately $275.4 million
and an aggregate committed principal balance of approximately
$297.0 million. The Company will
retain the Class E and Class F subordinated notes and the preferred
shares in the transaction.
The Securities will not be registered under the Securities Act
of 1933, as amended (the "Securities Act"), and may not be publicly
offered or sold in the United States absent registration
or an applicable exemption from registration requirements. The
Offering was made privately in transactions exempt from the
registration requirements of the Securities Act. This press release
is not an offer to sell any securities of the Company or the
Co-Issuers and is not a solicitation of an offer to buy such
securities. This press release includes statements that may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that are difficult
to predict, many of which are beyond management's control. Factors
that can affect future results are discussed in the documents filed
by the Company from time to time with the Securities and
Exchange Commission.
About Exantas Capital Corp.
Exantas Capital Corp. is a real estate investment trust that is
primarily focused on originating, holding and managing commercial
real estate mortgage loans and other commercial real estate-related
debt investments. The Company is externally managed by ACRES
Capital, LLC, a subsidiary of ACRES Capital Corp., a leading
commercial real estate investment management and services company
engaged in a broad range of activities. For more information,
please visit the Company's website
at www.exantas.com or contact investor relations
at IR@exantas.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements can generally be identified by our use
of forward-looking terminology such as "may," "trend," "will,"
"continue," "expect," "intend," "anticipate," "estimate,"
"believe," "look forward" or other similar words or terms. Because
such statements include risks, uncertainties and contingencies,
actual results may differ materially from the expectations,
intentions, beliefs, plans or predictions of the future expressed
or implied by such forward-looking statements. Factors that can
affect future results are discussed in the documents filed by the
Company from time to time with the Securities and Exchange
Commission. The Company undertakes no obligation to update or
revise any forward-looking statement to reflect new or changing
information or events after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required by
law.
View original
content:http://www.prnewswire.com/news-releases/exantas-capital-corp-announces-pricing-of-a-297-million-clo-backed-by-commercial-mortgage-loans-301125995.html
SOURCE Exantas Capital Corp.
