Finance

Major Move: TPG RE Finance Secures Massive $1.1B Real Estate Financing Deal

Published

1 year ago

March 12, 2025

TPG RE Finance Trust (NYSE: TRTX) has announced the pricing of TRTX 2025-FL6, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation (CRE CLO). The company expects to place approximately $962.5 million of investment grade securities with institutional investors, providing non-mark-to-market, non-recourse term financing.

Key features of TRTX 2025-FL6 include:

30-month reinvestment period
87.5% advance rate
Weighted average interest rate at issuance: Term SOFR plus 1.83%

TRTX will redeem TRTX 2019-FL3 on March 17, 2025, which currently has $114.6 million outstanding. The new issuance and redemption are expected to generate net cash proceeds of approximately $211.1 million for investment and corporate purposes. The transaction is expected to close around March 28, 2025.

Positive

Secured $1.1 billion in CRE CLO financing
Generated $211.1 million in net cash proceeds for investments
Obtained favorable 87.5% advance rate
Secured non-mark-to-market, non-recourse financing terms

Negative

Higher interest rate exposure with Term SOFR plus 1.83% financing cost

03/12/2025 – 08:35 PM

NEW YORK–(BUSINESS WIRE)–
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX” or the “Company”) today announced the pricing of TRTX 2025-FL6, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation (“CRE CLO”). The Company expects approximately $962.5 million of investment grade securities to be placed with institutional investors, providing TRTX with term financing on a non-mark-to-market, non-recourse basis. TRTX 2025-FL6 includes a 30-month reinvestment period, an advance rate of 87.5%, and a weighted average interest rate at issuance of Term SOFR plus 1.83%, before transaction costs. In connection with TRTX 2025-FL6, TRTX will redeem on March 17, 2025 TRTX 2019-FL3, a CRE CLO which currently has approximately $114.6 million of investment grade securities outstanding. The new issuance of TRTX 2025-FL6 and the redemption of TRTX 2019-FL3 are expected to result in net cash proceeds to the Company of approximately $211.1 million for investment and other corporate purposes. TRTX 2025-FL6 is expected to close on or around March 28, 2025, subject to customary closing conditions.

Goldman Sachs & Co. LLC is acting as sole structuring agent, co-lead manager and joint bookrunner for TRTX 2025-FL6. BofA Securities, Inc. and Wells Fargo Securities, LLC are acting as co-lead managers and joint bookrunners, and Barclays Capital Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., M&T Securities, Inc., Morgan Stanley & Co. LLC, Raymond James & Associates, Inc., Standard Chartered Bank and TPG Capital BD, LLC are acting as co-managers.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

ABOUT TRTX

TRTX is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate, which is the real estate investment platform of global alternative asset management firm TPG Inc. (NASDAQ: TPG). For more information regarding TRTX, visit https://www.tpgrefinance.com/.

FORWARD-LOOKING STATEMENTS

This press release contains “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. These forward‐looking statements are subject to various risks and uncertainties, including, without limitation, risks and uncertainties relating to: the performance of the Company’s investments; global economic trends and economic conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, stress to the commercial banking systems of the U.S. and Western Europe, labor shortages, currency fluctuations and challenges in global supply chains; the Company’s ability to originate loans that are in the pipeline and under evaluation by the Company; financing needs and arrangements; and the risks, uncertainties and factors set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as such risk factors may be updated from time to time in the Company’s periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue” or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition or state other forward-looking information. Statements, among others, relating to the closing of TRTX 2025-FL6 on a future date and the amount and expected use of the net cash proceeds to the Company from the new issuance of TRTX 2025-FL6 and the redemption of TRTX 2019-FL3 are forward-looking statements. The ability of TRTX to predict future events or conditions or their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company’s views only as of the date of this press release. Except as required by law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements appearing in this press release. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. Past performance is not indicative nor a guarantee of future returns.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250312981804/en/

INVESTOR RELATIONS CONTACT

+1 (212) 405-8500

IR@tpgrefinance.com

MEDIA CONTACT

TPG RE Finance Trust, Inc.

Courtney Power

+1 (415) 743-1550

media@tpg.com

Source: TPG RE Finance Trust, Inc.

FAQ

What is the size and purpose of TRTX’s 2025-FL6 CLO offering?

TRTX’s 2025-FL6 is a $1.1 billion Commercial Real Estate CLO offering that will provide non-mark-to-market, non-recourse term financing through $962.5 million in investment grade securities placement.

When will TRTX redeem the 2019-FL3 CLO and what are the net proceeds?

TRTX will redeem TRTX 2019-FL3 on March 17, 2025, and combined with the new FL6 issuance, will generate net cash proceeds of approximately $211.1 million.

What are the key terms of TRTX’s 2025-FL6 CLO?

TRTX 2025-FL6 features a 30-month reinvestment period, 87.5% advance rate, and weighted average interest rate of Term SOFR plus 1.83% at issuance.

When is the expected closing date for TRTX’s 2025-FL6 CLO?

TRTX 2025-FL6 is expected to close on or around March 28, 2025, subject to customary closing conditions.

Click to comment

Finance

Norway faces dilemma on openness in wealth fund ethical divestments, finance minister says

Published

8 hours ago

May 12, 2026

Press Room

When Norway’s $2.2 trillion wealth fund — the world’s largest — sells a company’s shares over ethical concerns, should it explain why? This seemingly simple question has become a dilemma for its guardians, the finance minister told Reuters, as a government commission reviews the rules that have made the fund a ‌global benchmark for ethical investing.

Finance

Morgan Stanley sees writing on wall for Citi before major change

Published

20 hours ago

May 11, 2026

Press Room

Morgan Stanley sees writing on wall for Citi before major change

Banks have had a stellar first quarter. The major U.S. banks raked in nearly $50 billion in profits in the first three months of the year, The Guardian reported.

That was largely due to Wall Street bank traders, who profited from a volatile stock exchange, Reuters showed.

But even without the extra bump from stock trading, banks are doing well when it comes to interest, the same Reuters article found. And some banks could stand to benefit even more from this one potential rule change.

Morgan Stanley thinks it could have a major impact on Citi in particular.

Upcoming changes for banks

To understand why Morgan Stanley thinks things are going to change at Citi, you need to understand some recent bank rule changes.

Banks make money by lending out money, which usually comes from depositors. But people need access to their money and the right to withdraw whenever they want.

So, banks keep a percentage of all money deposited to make sure they can cover what the average person needs.

But what happens if there is a major demand for withdrawals, as we saw during the financial crisis of 2008?

That’s where capital requirements come in. After the financial crisis, major banks like Citi were required by law to hold a higher percentage of money in order to avoid major bank failures.

For years, banks had to put aside billions of dollars. Money that couldn’t be lent out or even returned to shareholders.

Now, that’s all about to change.

Morgan Stanley thinks Citigroup could see an uptick in profit. Getty Images

Capital change requirements for major banks

Banks that are considered globally systemically important banking organizations (G-SIBs) have a higher capital buffer than community banks as they usually engage in banking activity that is far more complicated than your average market loan.

The list depends on the size of the bank and its underlying activity, according to the Federal Reserve.

Current global systemically important banks

A proposal from U.S. federal banking regulators could drastically reduce the amount that these large banks have to hold in reserve.

Changes would result in the largest U.S. banks holding an average 4.8% less. While that might seem like a small percentage number, for banks of this size, it equates to billions of dollars, according to a Federal Reserve memo.

The proposed changes were a long time coming, Robert Sarama, a financial services leader at PwC, told TheStreet.

“It’s a bit of a recognition that perhaps the pendulum swung a little too far in the higher capital requirement following the financial crisis, making it harder for banks to participate in some markets,” he said.

Finance

Couple forced to live in caravan buy first home as ‘stars align’ in off-market sale

Published

1 day ago

May 11, 2026

Press Room

Couple forced to live in caravan buy first home as ‘stars align’ in off-market sale

Natasha, 34, and Luke, 45, settled on their new home last month. (Source: Supplied)

Natasha Luscri and Luke Miller consider themselves among the lucky ones. The couple recently bought their first home in the northwest suburbs of Melbourne.

It wasn’t something they necessarily expected to be able to do, but some good fortune with an investment in silver bullion and making use of government schemes meant “the stars aligned” to get into the market. Luke used the federal government’s super saver scheme to help build a deposit, and the couple then jumped on the 5 per cent deposit scheme, which they say made all the difference.

“We only started looking because of the government deposit scheme. Basically, we didn’t really think it was possible that we could buy something,” Natasha told Yahoo Finance.

RELATED

Last month they settled on their two bedroom unit, which the pair were able to purchase in an off-market sale – something that is becoming increasingly common in the market at the moment.

Rather perfectly, they got it for about $20-30,000 below market rate, Natasha estimated, which meant they were under the $600,000 limit to avoid paying stamp duty under Victoria’s suite of support measures for first home buyers.

“They wanted to sell it quickly. They had no other offers. So we got it for less than what it would have gone for if it had been on market,” Natasha said.

“We didn’t have a lot of cash sitting in an account … I think we just got lucky and made some smart investment decisions which helped.”

It’s a far cry from when the couple couldn’t find a home due to the rental crisis when they were previously living in Adelaide and had to turn to sub-standard options.

“We’ve managed to go from living in a caravan because we were living in Adelaide and we couldn’t find a rental with our dogs … So we’ve gone from living in a caravan, being kind of tertiary homeless essentially because we couldn’t get a rental, to now having been able to purchase our first home,” Natasha explained.

Rate rises beginning to bite for new homeowners

Natasha, 34, and Luke, 45, are among more than 300,000 Australians who have used the 5 per cent deposit scheme to get into the housing market with a much smaller than usual deposit, according to data from Housing Australia at the end of March. However that’s dating back to 2020 when the program first launched, before it was rebranded and significantly expanded in October last year to scrap income or placement caps, along with allowing for higher property price caps.

Those who use the scheme, don’t have to pay for lender’s mortgage insurance (LMI), which essentially gets picked up by the backing of the Australian taxpayer.

But as the housing market cools, and prices in Melbourne and Sydney start to reverse, housing economists have warned buyers with a small deposit are a lot more vulnerable, and could quickly find themselves in negative equity.

New borrowers, including those who have used the 5 per cent deposit scheme, are falling behind on payments at a much higher rate this year. In the month of February, 0.78 per cent of new mortgage holders were 30 days in arrears, which is twice as high as the 0.39 per cent of borrowers who purchased their home earlier, according to data from the credit bureau Equifax, which was shared with Yahoo Finance.

“The scheme encourages risky borrowing and bidding. Borrowers are gambling with the taxpayers money,” former RBA economist Peter Tulip remarked online last week.

RELATED: Warning as Aussie couple face bankruptcy after using 5 per cent deposit scheme

But for a vast majority, like Natasha and Luke, they still have room to move. According to Loan Market broker Samuel Power, who helped the couple into their loan, their cautious borrowing approach is a common story.

“The only time we would look to move closer to that top-end borrowing limit is if it is the difference [for a client] between getting in or not, provided there is a strategy in place to be comfortable making repayments into the future,” he told Yahoo Finance.

“A key shift we are noticing is there is a shortage of stock in the price range typically favoured by first-home buyers and investors, which seems to be limiting both groups,” he added.

Natasha and Luke pictured in a cafe together. — The moment after Natasha and Luke settled on their new unit in April. (Source: Supplied)

As Natasha works as an actor with unsteady income, the bank assessed the loan on the basis of Luke’s income, who works as an engineer for a Virgin Australia subsidiary.

“We’ve actually had three cash rate increases since we got our pre-approval, which is frustrating,” Natasha admitted.

“If the rate rises continue, then it’ll be consumption spending in our budget that gets cut.”

Two sides to first home buyer ‘band-aid’

Although she works in the entertainment industry, Natasha studied International Business and Economics at RMIT to get her degree.

She understands there is an inherent conflict at the heart of the policy that she believes made the difference to becoming a homeowner.

“It’s funny, I know economists have been sort of across the board very negative about the 5 per cent deposit scheme in terms of pushing prices up. Having studied economics, I understand that, but at the same time, I’ve benefited,” she said.

“So you know, sometimes a policy can work for you, even though you might think it’s not going to work long-term in the economy.

“So, yeah, it’s complicated … policy tends to be a band-aid, rather than something that’s actually structural change.”

Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.