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Blackstone Closes Largest CLO Issue Since Financial Crisis
New York-based Blackstone Mortgage Trust, Inc. closed BXMT 2017-FL1, a $1-billion Collateralized Loan Obligation (“CLO”), the largest commercial real estate CLO issued post financial crisis. The CLO transaction finances pari passu participation interests in 31 of BXMT’s portfolio loans at an effective advance rate of 81.75% with a weighted average coupon of L+1.21%.
Proceeds from the CLO issuance were used to repay BXMT credit facilities.
BXMT’s Steve Plavin says, “The closing of BXMT 2017 FL-1 represents a significant expansion of our credit capacity and a further diversification of our funding sources. The innovative structural features enabled market leading efficiency, while preserving our flexibility as a balance sheet lender. The scale and quality of our loan portfolio uniquely positioned us to execute this highly attractive financing.”
Wells Fargo Securities structured the deal. Wells Fargo Securities, Citigroup and BofA Merrill Lynch acted as co-lead managers and joint bookrunners. Société Générale was co-manager.
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- ◦Financing
