NEW YORK, NY -- (Marketwired) -- 08/05/15 -- Resource Capital Corp. (NYSE: RSO) (the "Company") announced that its newly formed subsidiary, Resource Capital Corp. 2014-CRE4, Ltd. (the "Issuer"), will issue $223.735 million of non-recourse, floating-rate notes ("Offered Notes") at a weighted average cost of LIBOR +171 basis points. The Offered Notes include $179.927 million of Class A Notes, rated Aaa by Moody's Investors Services, Inc. which will be issued at a coupon of LIBOR +140 basis points and $43.81 million of Class B Notes, rated Baa3 by Moody's, which will be issued at a coupon of LIBOR +300 basis points. The Offered Notes are collateralized by floating rate commercial real estate first mortgage loans originated by wholly-owned subsidiaries of the Company. The Company will retain the subordinated notes and the preferred shares in the transaction, totaling $89.2 million, or 28.5% of the deal. The transaction is expected to close on or about August 20, 2015 subject to the satisfaction of customary closing conditions.
This transaction continues the Company's practice of term financing its lightly transitional floating rate whole loan originations through its proven access to the CRE CLO market. Dave Bloom, Head of Real Estate for the Company said, "Today we announce the pricing of our fourth securitization, RSO CRE 2015-4. We are again extremely pleased with the support that the institutional investment community has demonstrated in the credit quality of our loans through the successful execution of this transaction just two days after announcing its launch. During a period of significant volatility for similar transactions, our execution at a weighted average cost of LIBOR+171 provides continuing validation by the market of our ability to originate and structure high quality, floating rate, transitional loans. With this transaction RSO has successfully match-funded over $1.4 Billion of our self-originated whole loans in under 20 months. We are achieving a record pace of new loan originations and look forward to accessing the CRE CLO market as a known and trusted issuer on a regular basis."
The Securities will not be registered under the Securities Act of 1933, as amended, and may not be 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 of 1933, as amended (the "Securities Act"). This press release is not an offer to sell any securities of the Company or the issuer and is not soliciting 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 and 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. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events.
The Company is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt and equity investments. The Company is also active in commercial finance, including through Northport Capital, its middle market lending platform. The Company is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), an asset management company that specializes in real estate and credit investments.
Source: Resource Capital Corp.