Lument Finance Trust Closes $1B CRE CLO
Mortgage REIT Lument Finance Trust (LFT), formerly Hunt Companies Finance Trust,
has closed LMNT 2021-FL1, a $1-billion on-balance sheet commercial real estate collateralized loan obligation. The company expects to redeem Hunt CRE 2017-FL1 and Hunt CRE 2018-FL2, its two existing CRE CLOs, in conjunction with the transaction.
In connection with the securitization, an aggregate of approximately $834 million of investment grade-rated notes were issued and sold to institutional investors. A consolidated subsidiary of LFT retained subordinate interests in the issuing vehicle of approximately $166 million.
“The closing of LMNT 2021-FL1 represents another significant positive milestone in the progression of our business plan at LFT,” said CEO James Flynn. “This transaction allows us to quickly deploy a portion of the proceeds from our recently completed preferred equity offering while also providing us with favorable economic and structural features to allow for continued growth.”