Fitch: Ladder Capital notes BB

Fitch Ratings said it assigned an expected rating of BB to the offering of $400 million senior unsecured notes due 2025 by co-issuers, Ladder Capital Finance Holdings LLLP and Ladder Capital Finance Corp., which are subsidiaries of Ladder Capital Corp.

Ladder intends to use the net proceeds to repay existing secured debt, to pay offering related expenses and for general corporate purposes.

Fitch said the expected rating on the unsecured notes is equalized with Ladder's issuer default rating, reflecting that although the majority of Ladder's debt is secured, unsecured bondholders benefit from sufficient unencumbered asset coverage, which suggests average recoveries.

Unsecured debt represented 18.5% of total debt as of June 30 and 27.1% pro forma for the debt issuance.

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