Franklin BSP Realty Trust, Inc. today announced the pricing of BSPRT 2025-FL12, a $1.076 billion managed Commercial Real Estate Collateralized Loan Obligation. FL12 features a 30-month reinvestment period. The transaction has an initial advance rate of 88% and a weighted average interest cost of 1M CME Term SOFR+1.61% before accounting for discount and transaction costs. The transaction is expected to settle on October 15, 2025. Concurrently with the settlement of FL12, FBRT will call three CLOs issued in 2021 and 2022.
In addition, FBRT will finance an approximately $500 million pool of assets with a money center bank. Combined, these transactions are expected to generate approximately $250 million of cash, reduce financing costs on the financed assets by about 65 basis points, and support approximately $1.0 billion of new loan originations. The resulting CLO activity and new originations are expected to ultimately contribute an incremental quarterly earnings benefit of approximately $0.05 to $0.07 per share.
Michael Comparato, President of FBRT, commented: “We are pleased to announce the successful pricing of FL12. On our second quarter earnings call, we outlined a three-pronged approach to growing earnings per share. One of those prongs included calling several older CLOs and issuing a new transaction. With the completion of FL12, we have made important progress toward that goal. Investor demand for the transaction was very strong, with broad participation across the capital stack. We are grateful for the continued support from leading institutional investors.”
J.P. Morgan Securities LLC served as sole structuring agent. Wells Fargo Securities, LLC and Barclays Capital Inc. served 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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