Exantas Capital Corp. Announces New CLO
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.