ACRES Commercial Realty Corp. Announces Pricing of a $1.0 Billion CLO Backed by Commercial Mortgage Loans

Core Viewpoint - ACRES Commercial Realty Corp. announced the issuance of $879.5 million in non-recourse, floating-rate notes through its subsidiary, aimed at financing approximately $1 billion in commercial real estate mortgage loans at a weighted-average rate of SOFR+168 basis points [1][2]. Group 1: Offering Details - The transaction is expected to close by February 12, 2026, and is collateralized by floating-rate commercial real estate first mortgage loans with an aggregate outstanding principal balance of about $1.0 billion, including $200 million in ramp cash [2]. - The structure includes a 180-day ramp-up acquisition period for acquiring eligible mortgage assets and a 30-month reinvestment period for reinvesting principal proceeds from mortgage assets [2]. Group 2: Notes Breakdown - The offering includes various classes of notes with different ratings and coupon rates: - $589.7 million of Class A Notes rated Aaa(sf) by Moody's and AAAsf by Fitch, issued at SOFR+145 basis points - $104.2 million of Class A-S Notes rated AAAsf by Fitch, issued at SOFR+170 basis points - $72.4 million of Class B Notes rated AA-sf by Fitch, issued at SOFR+195 basis points - $58.5 million of Class C Notes rated A-sf by Fitch, issued at SOFR+225 basis points - $36.9 million of Class D Notes rated BBBsf by Fitch, issued at SOFR+285 basis points - $17.8 million of Class E Notes rated BBB-sf by Fitch, issued at SOFR+360 basis points [5]. Group 3: Company Overview - ACRES Commercial Realty Corp. is a real estate investment trust focused on originating, holding, and managing commercial real estate mortgage loans, with potential equity investments in commercial properties through direct ownership and joint ventures [5][6].