TPG RE Finance Rides the Wave with Pricing of $1.1B CRE CLO

TPG RE Finance Trust, Inc. (TRTX) has priced TRTX 2025-FL6, a $1.1 billion commercial real estate collateralized loan obligation (CLO). The company anticipates placing around $962.5 million in investment-grade securities with institutional investors, obtaining term financing on a non-mark-to-market, non-recourse basis.

The new CLO, TRTX 2025-FL6, includes a 30-month reinvestment period and an advance rate of 87.5%. The weighted average interest rate at issuance stands at Term SOFR plus 1.83%, before transaction costs

As part of the deal, TRTX will redeem its prior CRE CLO, TRTX 2019-FL3, with $114.6 million in investment-grade securities outstanding. The transaction is projected to yield about $211.1 million in net cash proceeds for investment and corporate use.

TRTX 2025-FL6 arrives amid a robust expansion in the CLO market, with the asset class gaining traction among diverse institutional investors. Recent weeks have showcased several high-profile CLO closings, including Comvest Credit Partners’ second CLO at $650 million, Polen Capital’s inaugural CLO at $407.15 million, and Churchill Asset Management’s oversubscribed 15th CLO at $750 million.

TRTX, a firm focused on originating and managing first mortgage loans for institutional properties in primary and select secondary U.S. markets, reported $1.6 billion in CLOs as of December 31, 2024.

Goldman Sachs is serving as the sole structuring agent and co-lead manage for TRTX 2025-FL6, with BofA Securities and Wells Fargo Securities also playing key roles as co-lead managers. Additional financial institutions including Barclays, Citigroup, HSBC, Morgan Stanley, and others are participating as co-managers.

The transaction is expected to close around March 28.