The real-estate investment trust, Exantas Capital Corp., is turning the heads of investors and hedge funds alike going into the second quarter of 2019.
With the increase of industry-wide interest in Exantas Capital Corp., dominant hedge fund managers are investing in Exantas, and current stakeholders are upping their holdings. Notable Hedge Fund managers investing include Marshall Wace LLP and Caxton Associates LP. Current stakeholders that are raising their stake in Exantas Capital Corp. by a substantial amount include HBK investments, which held a stake worth $16.3 million at the end of the first quarter.
Exantas Capital Corp. is externally managed by Exantas Capital Manager Inc., which is a subsidiary of C-III Partners LLC. C-III is an investment management and commercial real estate services company of which Andrew Farkas is the CEO and Chairman. Exantas Capital Corp. leverages C-III by providing transitional commercial real estate loans and mortgage-backed securities.
Exantas Capital Corp., formerly known as Resource Capital Corporation, recently announced the issuance of $404.9 million of non-recourse, floating rate notes. The issuance consists of notes of multiple classes rated by Moody’s Investors Service, Fitch Ratings and Kroll Bond Rating Agency (KBRA). Exantas is a real estate investment trust that is a subsidiary of C-III Capital Partners LLC. Mr. Andrew L. Farkas serves as Chairman of Exantas, and Chairman and CEO of C-III as a whole.
Exantas issued several classes of highly rated notes, including $290.5 million of Class A Notes, rated Aaa by Moody’s and AAA by Fitch Ratings and KBRA. The company also issued $39.2 million of Class B Notes, which KBRA rated AA-, and $30.2 million of class C Notes, which were rated A- by KBRA. Finally, they issued $45.0 million of Class D Notes, with a rating of BBB- from KBRA. Class E and F notes will not be offered at this time.
CEO Robert C. Lieber was happy with the CLO issuance, saying: “This transaction is more than 35% larger than its CLO issuance completed last June, which was the company’s largest post-crisis issuance at the time.” The transaction is expected to close on June 26th, 2018, but already has been received favorably and has significant demand.
Exantas Capital Corporation utilizes C-III’s expertise and resources to specifically invest in CRE credit investments. Mr. Farkas has successfully grown C-III from its founding in 2010 to a fully diversified asset management company with several subsidiaries. It manages a total of $8 billion in assets, and has resolved over $50 billion of real estate loans.