NEW YORK, NY -- (Marketwired) -- 02/11/15 --
Resource Capital Corp. (NYSE: RSO) (the "Company") announced that its newly formed subsidiary, Resource Capital Corp. 2015-CRE3, Ltd. (the "Issuer"), will issue approximately $282 million of non-recourse, floating-rate notes ("Offered Notes") at a weighted average cost of LIBOR+190 basis points (the "CLO"). The Company will retain the subordinated notes and the preferred shares in the CLO, equal to approximately $64 million ("Invested Equity"), which represents an advance rate of 81.5%. The Company expects to earn a return on its Invested Equity of 17-19% over the life of the CLO, inclusive of fees and expenses. The Offered Notes are collateralized by 20 floating rate commercial real estate first mortgage loans originated by a wholly-owned subsidiary of the Company with a principal balance of $400.6 million, inclusive of pari passu future funding participations that will be held by the Company outside of the CLO. The anticipated closing date of the CLO is on or about February 24, subject to the satisfaction of customary closing conditions.
Dave Bloom, Head of Real Estate for the Company, said, "We are extremely pleased to have priced our third successful CLO in the past 14 months. Starting with our first CLO, in December of 2013, we have financed in excess of $1 billion of collateral through these transactions. Another strong execution in RSO 2015-CRE3 again provides validation by the market of our ability to originate and structure high quality, floating rate, transitional loans. RSO's forward pipeline remains full and we look forward to accessing the CLO market on a regular basis to match fund our commercial mortgage loan portfolio as we continue to scale our well established nationwide lending platform."
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.
About Resource Capital Corp.
RSO 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 also makes other commercial finance investments. 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.
For more information, please visit the Company's website at www.resourcecapitalcorp.com or contact investor relations at email@example.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "trend," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by Resource Capital Corp. from time to time with the Securities and Exchange Commission. Resource Capital Corp. undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.
Resource Capital Corp.
Source: Resource Capital Corp.