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Collateralized loan obligations

TPG RE Finance Trust Announces Pricing of $1.1 Billion Commercial Real Estate Collateralized Loan Obligation

Strategic Insights

— 1 min read

TPG RE Finance Trust, Inc. (TRTX) has announced the pricing of TRTX 2025-FL7, a $1.1 billion managed commercial real estate collateralized loan obligation (CRE CLO). The company expects approximately $957.0 million of investment-grade securities to be placed with institutional investors, providing TRTX with term financing on a non-mark-to-market, non-recourse basis. TRTX 2025-FL7 includes a 30-month reinvestment period, an advance rate of 87.0%, and a weighted average interest rate at issuance of Term SOFR plus 1.67%, before transaction costs. The deal is expected to close on or around November 17, 2025, subject to customary closing conditions.

Key Takeaways:

  • TRTX 2025-FL7 is a $1.1 billion managed CRE CLO, with approximately $957.0 million of investment-grade securities expected to be placed with institutional investors.
  • The deal includes a 30-month reinvestment period, an advance rate of 87.0%, and a weighted average interest rate at issuance of Term SOFR plus 1.67%, before transaction costs.
  • TRTX is expected to redeem TRTX 2021-FL4, a CRE CLO with approximately $411.5 million of investment-grade securities outstanding, subject to any repayments of loans currently held by TRTX 2021-FL4 prior to the TRTX 2025-FL7 settlement date.
  • Goldman Sachs & Co. LLC is acting as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2025-FL7.
  • Wells Fargo Securities, LLC and BofA Securities, Inc. are acting as co-lead managers and joint bookrunners, and BMO Capital Markets Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., M&T Securities, Inc., Raymond James & Associates, Inc., Standard Chartered Bank and TPG Capital BD, LLC are acting as co-managers.

Statistics:

  • $1.1 billion: The size of the TRTX 2025-FL7 CRE CLO.
  • $957.0 million: The amount of investment-grade securities expected to be placed with institutional investors.
  • 30 months: The length of the reinvestment period for TRTX 2025-FL7.
  • 87.0%: The advance rate for TRTX 2025-FL7.
  • 1.67%: The weighted average interest rate at issuance of Term SOFR for TRTX 2025-FL7, before transaction costs.
  • $411.5 million: The amount of investment-grade securities outstanding in TRTX 2021-FL4.

Sources:

  • BusinessWire: "TPG RE Finance Trust, Inc. Announces Pricing of TRTX 2025-FL7, a $1.1 Billion Managed CRE CLO"
  • TRTX press release: "TPG RE Finance Trust, Inc. Announces Pricing of TRTX 2025-FL7, a $1.1 Billion Managed CRE CLO"

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