TPG RE Finance Trust Prices $1B CRE CLO

TPG RE Finance Trust has priced a $1 billion managed commercial real estate collateralized loan obligation. TRTX 2026-FL8 is expected to place approximately $820 million of investment-grade securities with institutional investors. The financing will be nonrecourse and non-mark-to-market.

The transaction carries a weighted average interest rate of one-month Term SOFR plus 1.43% before transaction costs and includes a 30-month reinvestment period. The CLO is expected to close on or around Oct. 2.

The transaction follows TRTX 2025-FL7, a $1.1 billion managed CRE CLO issued last year. That vehicle placed $957 million of investment-grade bonds at a weighted average rate of Term SOFR plus 1.67%, indicating tighter funding costs for the new issuance.

TRTX reported a $4.1 billion loan portfolio and $488.2 million of near-term liquidity as of June 30. Non-mark-to-market facilities accounted for 85.2% of total borrowings.

The company originates and manages primarily first-mortgage loans secured by institutional commercial properties in major and select secondary U.S. markets. It is externally managed by an affiliate of TPG Real Estate.

Wells Fargo Securities, LLC is acting as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2026-FL8. Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are acting as co-lead managers and joint bookrunners, and BofA Securities, Inc., Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., HSBC Securities (USA) Inc., Scotia Capital (USA) Inc., Raymond James & Associates, Inc. and TPG Capital BD, LLC are acting as co-managers.