TPG RE Finance Trust prices $1.1 billion commercial real estate CLO

NEW YORK - TPG RE Finance Trust, Inc. (NYSE:TRTX) announced Monday the pricing of a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO). The transaction, designated as TRTX 2025-FL7, is expected to close around November 17, 2025. The company, with a strong current ratio of 3.95, demonstrates robust liquidity position according to InvestingPro data.

According to the company’s press release statement, approximately $957.0 million of investment grade securities will be placed with institutional investors, providing the company with term financing on a non-mark-to-market, non-recourse basis.

The CRE CLO features a 30-month reinvestment period, an 87.0% advance rate, and a weighted average interest rate at issuance of Term SOFR plus 1.67%, before transaction costs.

In connection with this new issuance, TRTX plans to redeem TRTX 2021-FL4, a CRE CLO with approximately $411.5 million of investment grade securities currently outstanding. The redemption is scheduled for November 17, 2025, subject to any loan repayments prior to the settlement date.

Goldman Sachs & Co. LLC is serving as the sole structuring agent, co-lead manager and joint bookrunner for the transaction. Wells Fargo Securities, LLC and BofA Securities, Inc. are acting as co-lead managers and joint bookrunners, while several other financial institutions are participating as co-managers.

TPG RE Finance Trust is a commercial real estate finance company that primarily originates and manages first mortgage loans secured by institutional properties in primary and select secondary U.S. markets. The company is externally managed by TPG RE Finance Trust Management, L.P., part of TPG Real Estate, which is the real estate investment platform of global alternative asset management firm TPG Inc. (NASDAQ:TPG). With a market capitalization of $21.35 billion and annual revenue of $3.89 billion, TPG shows significant market presence. InvestingPro analysis indicates the stock is currently undervalued, with 8 additional exclusive insights available to subscribers.

The closing of the transaction remains subject to customary conditions. With the company’s next earnings report due in 8 days, investors can access comprehensive analysis and detailed metrics through InvestingPro’s exclusive research reports, available for over 1,400 US stocks.

In other recent news, Hologic Inc. is reportedly in advanced talks with private equity firms Blackstone Inc. and TPG Inc. regarding a potential takeover. Sources familiar with the matter indicate that the parties are discussing a price above $75 per share, valuing Hologic at over $17 billion, including debt. This development follows a previous approach by Blackstone and TPG, which was rejected earlier this year. Meanwhile, TPG has been the subject of several positive analyst evaluations. Fitch Ratings recently upgraded TPG’s issuer default ratings to ’A-’ from ’BBB+’, citing enhanced scale and product diversification. Additionally, JPMorgan upgraded TPG stock to Overweight, raising its price target due to attractive valuation. BMO Capital also initiated coverage of TPG with an Outperform rating, highlighting the firm’s strong fundraising and product expansion efforts. These developments reflect significant activity and interest in both Hologic and TPG in the investment community.

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