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Colony Closes $1B CRE CLO Secured by 29 Assets
Los Angeles-based Colony Credit Real Estate, Inc. closed CLNC 2019-FL1, a $1-billion managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO). The CRE CLO accretively finances interests in 21 floating-rate mortgage loans secured by 39 properties, with an 83.5% initial advance rate at a weighted average coupon at issuance of LIBOR plus 1.59%, before transaction costs.
The loan collateral includes multifamily, office and hospitality properties across 10 states and the District of Columbia. The structure features a two-year reinvestment period.
Colony Credit Real Estate’s Kevin P. Traenkle says, “With a lower cost of funds, higher advance rate and managed reinvestment structure, this CRE CLO fortifies the Company’s capital structure, improves the return on equity on our retained interests, and allows the Company to continue to expand its core financing business.”
Wells Fargo Securities, LLC acted as sole structuring agent. Wells Fargo Securities, LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as co-lead managers and joint bookrunners.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Financing




