Chicago, Oct. 7 – Varde Partners, with VMC Finance 2019-FL3 LLC as issuer, closed a commercial real estate collateralized loan obligation due June 15, 2037, its third, according to a press release and a pre-sale report.
The asset pool consists of 24 floating-rate mortgages secured by 47 properties and has a total unpaid principal balance of $627.5 million.
Specifically, the CRE CLO sold $348.3 million of class A floating-rate notes at one-month Libor plus 105 basis points; $24.3 million of class A-S floating-rate notes at one-month Libor plus 145 bps; $43.9 million of class B floating-rate notes at one-month Libor plus 170 bps; $45.5 million of class C floating-rate notes at one-month Libor plus 205 bps; $52.6 million of class C floating-rate notes at one-month Libor plus 275 bps; $23.5 million of class E floating-rate notes at one-month Libor plus 375 bps and $19.6 million of class F floating-rate notes at one-month Libor plus 475 bps.
The CLO also sold $69.8 million of preferred shares.
The assets include office, multifamily, retail, hospitality, and mixed-use properties across 12 states with an average principal balance of $26.1 million.
The Minneapolis-based investment firm has originated or acquired more than $2.5 billion in commercial real estate loans since 2014 with its origination activity primarily focused on floating-rate mortgage loans on light transitional, value-add and event-driven commercial and multifamily opportunities across the United States.
This is Varde’s third and largest commercial real estate CLO and seventh securitization of commercial real estate collateral.
Varde is VMC’s parent company.
| Issuer: | VMC Finance 2019-FL3 LLC
|
| Amount: | $627.5 million
|
| Maturity: | June 15, 2037
|
| Securities: | Floating-rate notes and preferred shares
|
| Structure: | CRE CLO
|
| Placement agent: | Goldman Sachs & Co. LLC
|
| Manager: | VMC Lender LLC
|
| Call feature: | Non-call period ends March 2021
|
| Pricing date: | Sept. 16
|
| Settlement date: | Oct. 3
|
|
|
| Class A notes
|
| Amount: | $348.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus 105 bps
|
| Ratings: | Moody’s: Aaa
|
| KBRA: AAA
|
|
|
| Class A-S notes
|
| Amount: | $24.3 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus145 bps
|
| Rating: | KBRA:AAA
|
|
|
| Class B notes
|
| Amount: | $43.9 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus 170 bps
|
| Rating: | KBRA: AA-
|
|
|
| Class C notes
|
| Amount: | $45.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus 205 bps
|
| Rating: | KBRA: A-
|
|
|
| Class D notes
|
| Amount: | $52.6 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus 275 bps
|
| Rating: | KBRA: BBB-
|
|
|
| Class E notes
|
| Amount: | $23.5 million
|
| Securities: | Floating-rate notes
|
| Coupon: | One-month Libor plus 375 bps
|
| Rating: | KBRA: BB-
|
|
|
| Class F notes
|
| Amount: | $19.6 million
|
| Securities: | Floating-rate notes 475 bps
|
| Coupon: | One-month Libor plus
|
| Rating: | KBRA: B-
|
|
|
| Preferred shares
|
| Amount: | $69.8 million
|
| Securities: | Preferred shares
|
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