Franklin BSP Realty Trust (FBRT) closed BSPRT 2023-FL10, aan approximately $900 million managed commercial real estate collateralized loan obligation. This was FBRT’s 10th CLO completed since June 2017. The FL10 CRE CLO features an 18-month reinvestment period with an initial advance rate of 85.5% and a weighted average interest rate of Term SOFR+275% before accounting for discount and transaction costs.
J.P. Morgan served as the sole structuring agent. Wells Fargo Securities and Barclays Capital served as co-lead managers and joint bookrunners.
“We are excited to close FL10, the first new issue, multi-asset class managed CRE CLO in the market since August 2022,” Michael Comparato, president of FBRT, said. “FL10’s starting as-is Loan-to-Value of 59% is amongst the lowest leverage in the CLO market in recent years. This transaction allows us to increase capacity on our warehouse lines by converting a meaningful amount of warehouse liabilities to a non-recourse, non-mark-to-market liability structure. We are pleased with the execution of FL10 and our return to the CLO market.”
