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Hunt Companies Finance Trust Closes $285M Commercial Real Estate CLO
New York-based Hunt Companies Finance Trust, Inc. closed Hunt CRE 2018-FL2, Ltd., a $285 million commercial real estate Collateralized Loan Obligation (CLO), which financed 20 first lien floating rate commercial real estate mortgage assets acquired from Hunt Real Estate Capital, an affiliate of the company’s external manager. The investment grade classes of the CLO represent 77% of the transaction at closing, and have a weighted average interest rate at issuance of LIBOR + 1.44%.
The company will retain the non-investment grade bonds and preferred shares of the CLO, which in aggregate have a face value of $65,551,000 at the time of closing.
Hunt Companies Finance Trust’s James Flynn says, “The closing of Hunt CRE 2018-FL2 represents a significant step in the repositioning of Hunt Companies Finance Trust into a commercial real estate credit investment vehicle. This transaction effectively completes that transition, and provides us with flexibility and capacity to continue to grow.”
J.P. Morgan acted as sole structuring agent. J.P. Morgan, Hunt Financial Securities and Wells Fargo Securities acted as co-lead managers and joint bookrunners.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Financing