Exantas gets $375 million capital commitments via MassMutual, Oaktree

By Sarah Lizee

Olympia, Wash., Aug. 4 – Exantas Capital Corp. entered into separate agreements with Massachusetts Mutual Life Insurance Co. and a fund managed by Oaktree Capital Management, LP for new capital commitments aggregating up to $375 million.

Facility

The company entered into a $250 million seven-year senior secured financing facility with MassMutual on Friday. The facility can be used to fully repay Exantas’ warehouse and repurchase facilities, thereby reducing the potential for any future margin calls under those facilities.

The facility has an advance rate of 55% and an interest rate of 5.75%.

Flexible operating terms include a two-year revolving period followed by a five-year term, with no prepayment penalty after year one.

Notes

The company also entered into agreements with Oaktree and MassMutual to provide a commitment of up to $125 million in the form of seven-year unsecured notes.

The unsecured notes have a cash interest rate of 8.75% and a PIK interest rate of 3.25%, totaling an annual interest rate of 12%.

The company issued $50 million of unsecured notes to Oaktree and MassMutual at closing and may draw up to an additional $75 million over the next 18 months at Exantas’ option.

The unsecured notes provide balance sheet flexibility and enhance Exantas’s liquidity position.

In connection with the $50 million unsecured notes issued at closing, Exantas also issued to Oaktree and MassMutual warrants to purchase an aggregate of 1.4 million shares of common stock at an exercise price of $0.01 per share.

In connection with the issuance of the remaining $75 million of additional unsecured notes, the company will issue Oaktree and MassMutual additional warrants to purchase an aggregate of 2.1 million additional shares ratably as commitments are funded.

Exantas Capital is a New York-based real estate investment trust that originates, holds and manages commercial mortgage loans and other commercial real estate-related debt investments.

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