Ready Capital Announces Pricing of RCMF 2023-FL12, a Securitization of $648.6 million in Bridge Loans and the Redemption of RCMF 2020-FL4
Transaction Represents the Company’s 12th CRE CLO
NEW YORK, June 12, 2023 (GLOBE NEWSWIRE) — Ready Capital Corporation (NYSE: RC) (“Ready Capital” or the “Company”) today announced the pricing of a $648.6 million commercial mortgage collateralized loan obligation (“CRE CLO”) transaction (“RCMF 2023-FL12”).
Moody’s Investor Service, Inc. (“Moody’s”) and DBRS, Inc. (“DBRS”) assigned a “AAA” rating, to the seniormost certificates, with DBRS providing ratings to the remaining classes of the transaction.
The transaction, issued by Ready Capital Mortgage Financing 2023-FL12, LLC, represents the Company’s twelfth CRE CLO since inception, with the Company’s total CRE CLO issuance totaling approximately $7.5 billion of collateral UPB, combined.
The transaction was met with demand from 20+ unique investors and provides the company with non-recourse, non-mark to market, term financing.
RCMF 2023-FL12 consists of 35 RC-originated first-lien floating rate loans secured by 59 properties across the United States. The portfolio includes mortgage loans primarily secured by multifamily (86.2%), and industrial (13.8%) properties across 17 states.
“The pricing of RCMF 2023-FL12 marks the latest in a series of significant milestones for Ready Capital,” said Tim Geraghty, Head of Capital Markets. “We’re pleased with the pricing and investor reception for this transaction in a challenging period for the CRE/CMBS markets. RC has repeatedly executed on its business plan and expects to continue to opportunistically deploy capital into its origination and acquisitions businesses for the remainder of 2023.”
The CRE CLO was arranged by a bank syndicate including J.P. Morgan Securities LLC as sole structuring agent, Atlas SP, Goldman Sachs, and Deutsche Bank Securities, Inc. as co-lead managers and Performance Trust, Piper Sandler & Co. and Santander as co-managers.
The Company also announced the collapse of its RCMF 2020-FL4 securitization which will be redeemed on June 26, 2023. Four of the underlying loans in the FL4 transaction we refinanced in the RCMF 2023-FL12 transaction with the remaining assets expected to be held on balance sheet.
About Ready Capital Corporation
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances, and services small to medium-balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.
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