Exantas Capital Corp. Announces Pricing of a $522.6 Million CLO Backed by Commercial Mortgage Loans

NEW YORK, March 3, 2020 /PRNewswire/ —  Exantas Capital Corp. (NYSE: XAN[1]) (the “Company”) announced that its newly formed subsidiary, Exantas Capital Corp. 2020-RSO8, Ltd. (the “Issuer”), will issue $435.7 million of non-recourse, floating-rate notes (“Offered Notes,” the “Securities” or the “Offering”) at a weighted average cost of the one-month London Interbank Offered Rate (“LIBOR”)+143 basis points. The Offered Notes include: $295.3 million of Class A Notes, which were rated Aaa(sf) by Moody’s Investors Service, Inc., and AAA(sf) by DBRS, Inc.(“DBRS Morningstar”) and will be issued at a coupon of LIBOR+115 basis points; $39.2 million of Class A-S Notes, which were rated AAA(sf) by DBRS Morningstar and will be issued at a coupon of LIBOR+145 basis points; $26.1 million of Class B Notes, which were rated AA(low)(sf) by DBRS Morningstar and will be issued at a coupon of LIBOR+175 basis points; $32.7 million of Class C Notes, which were rated A(low)(sf) by DBRS Morningstar and will be issued at a coupon of LIBOR+215 basis points; $26.1 million of Class D Notes, which were rated BBB(high)(sf) by DBRS Morningstar and will be issued at a coupon of LIBOR+250 basis points; and $16.3 million of Class E Notes, which were rated BBB(low)(sf) by DBRS Morningstar and will be issued at a coupon of LIBOR+280.

The Offered Notes are collateralized by floating rate commercial real estate first mortgage loans originated by the Company with an aggregate principal balance of $522.6 million. The Company will retain the Class F and Class G subordinated notes and the preferred shares in the transaction, which is expected to close on or about March 12, 2020, subject to satisfaction of customary closing conditions. The Company intends to purchase the Class D Notes and Class E Notes when the transaction closes.

Matthew J. Stern, President of the Company, stated, “Despite the significant market volatility experienced during this offering, we continue to be pleased with the positive reception of the Company’s debt offerings in the CLO market as this market has proven to be an attractive and efficient financing source for the Company’s loan portfolio.”

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