Blackstone Mortgage Trust prices $1 billion CRE CLO; Voya, KCAP refinance 2015 vintage CLOs

By Cristal Cody

Tupelo, Miss., Dec. 21 – Blackstone Mortgage Trust, Inc. announced on Thursday that it priced and closed on a $1 billion static commercial real estate collateralized loan obligation, the largest of its kind post-financial crisis.

“The closing of BXMT 2017 FL-1 represents a significant expansion of our credit capacity and a further diversification of our funding sources,” Steve Plavin, president and chief executive officer of BXMT, said in the news release.

In other deal action, details emerged on two new refinanced CLOs.

Voya Alternative Asset Management LLC priced $526.5 million of notes in a refinancing and reset of a vintage 2015 transaction.

Also, KCAP Financial, Inc. refinanced $393.7 million of notes from a 2015 CLO.

Blackstone Mortgage Trust’s BXMT 2017-FL1, Ltd. deal is the largest commercial real estate CLO issued post-financial crisis, according to the release.

The CLO transaction finances pari passu participation interests in 31 of BXMT's portfolio loans at an effective advance rate of 81.75% with a weighted average coupon at issuance of Libor plus 1.21 basis points.

The securities are due June 15, 2035.

Wells Fargo Securities, LLC was the structuring agent.

Blackstone Mortgage Trust will manage the CLO, its first CRE CLO transaction.

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