Claros Mortgage Trust, Inc. announces revaluation of term loans
NEW YORK–(COMMERCIAL THREAD) – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the âCompanyâ or âCMTGâ) today announced that it has revised the price of its secured B term loan facility to approximately $ 763 million from maturing on August 9, 2026 (the âTerm Loanâ).
The term loan will use the Guaranteed Overnight Funding Rate (SOFR), replacing LIBOR as the benchmark rate. Based on the current SOFR, the overall term loan price has been reduced by 100 basis points to the sum of (i) SOFR plus a credit spread adjustment (or, if higher, 50 basis points ) and (ii) 450 basis points. Previously, the term loan was valued at LIBOR plus 500 basis points with a LIBOR floor of 100 basis points. In addition, the 12-month advance call protection period, which required payment of a 1% premium to repay term loans during this period, has been shortened to six months. All other important terms and conditions have remained unchanged.
“We are delighted to announce the refinancing of our term loan, which significantly reduces the overall cost of our debt, âsaid Richard Mack, CEO and President of CMTG. “Refinancing our term loan at the end of our IPO was a key priority for CMTG, and we believe the company is well positioned to continue to further optimize our capital structure over time.
About Claros Mortgage Trust, Inc.
CMTG is a real estate investment trust that focuses primarily on providing senior and subordinate loans on transitional commercial real estate assets located in major US markets. CMTG is managed and advised externally by Claros REIT Management LP, a subsidiary of Mack Real Estate Credit Strategies. , LP Additional information is available on the Company’s website at www.clarosmortgage.com.
Certain statements in this press release may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. . CMTG intends that all such forward-looking statements be covered by the safe harbor provisions applicable to forward-looking statements contained in such laws. These forward-looking statements can generally be identified by CMTG’s use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate” , “Believe”, “continue”, “seek”, “objective”, “objective”, “strategy”, “plan”, “focus”, “priority”, “should”, “could”, “possible”, ” possible â,â looking ahead â,â optimistic âor other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, these statements are not intended to be a guarantee of the performance of CMTG in future periods. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statement, see the reports and other documents filed by CMTG with the US Securities and Exchange Commission. United. Except as required by law, CMTG assumes no obligation to update or revise any forward-looking statements contained in this press release.