Franklin BSP Realty Trust, Inc. Announces Pricing of a $1.076 Billion CRE CLO

By: Franklin BSP Realty Trust, Inc. via Business Wire

September 24, 2025 at 17:36 PM EDT

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) (“FBRT”) today announced the pricing of BSPRT 2025-FL12 (“FL12”), a $1.076 billion managed Commercial Real Estate Collateralized Loan Obligation. FL12 features a 30-month reinvestment period. The transaction has an initial advance rate of 88% and a weighted average interest cost of 1M CME Term SOFR+1.61% before accounting for discount and transaction costs. The transaction is expected to settle on October 15, 2025. Concurrently with the settlement of FL12, FBRT will call three CLOs issued in 2021 and 2022.

In addition, FBRT will finance an approximately $500 million pool of assets with a money center bank. Combined, these transactions are expected to generate approximately $250 million of cash, reduce financing costs on the financed assets by about 65 basis points, and support approximately $1.0 billion of new loan originations. The resulting CLO activity and new originations are expected to ultimately contribute an incremental quarterly earnings benefit of approximately $0.05 to $0.07 per share.

Michael Comparato, President of FBRT, commented: “We are pleased to announce the successful pricing of FL12. On our second quarter earnings call, we outlined a three-pronged approach to growing earnings per share. One of those prongs included calling several older CLOs and issuing a new transaction. With the completion of FL12, we have made important progress toward that goal. Investor demand for the transaction was very strong, with broad participation across the capital stack. We are grateful for the continued support from leading institutional investors.”

J.P. Morgan Securities LLC served as sole structuring agent. Wells Fargo Securities, LLC and Barclays Capital Inc. served as co-lead managers and joint bookrunners.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, Inc. (NYSE: FBRT) is a real estate investment trust that originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located in the United States. As of June 30, 2025, FBRT had approximately $5.6 billion of assets. FBRT is externally managed by Benefit Street Partners L.L.C., a wholly owned subsidiary of Franklin Resources, Inc. For further information, please visit www.fbrtreit.com.

Forward-Looking Statements

Certain statements included in this press release are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of FBRT and members of our management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should" or similar expressions. Actual results may differ materially from those contemplated by such forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

FBRT's forward-looking statements are subject to various risks and uncertainties. Factors that could cause actual outcomes to differ materially from our forward-looking statements include macroeconomic factors in the United States including, but not limited to, inflation, changing interest rates and economic contraction, the extent of any recoveries on delinquent loans, the financial stability of our borrowers and the other risks and important factors contained and identified in FBRT’s filings with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and its subsequent filings with the SEC, any of which could cause actual results to differ materially from the forward-looking statements. The forward-looking statements included in this communication are made only as of the date hereof.