Resource Capital Corp. Announces Pricing of $377 Million CLO Backed by Self-Originated Commercial Mortgage Loans

NEW YORK, June 26, 2017 -- Resource Capital Corp. (NYSE:RSO) (the “Company”) announced that its newly formed subsidiary, Resource Capital Corp. 2017-CRE5, Ltd. (the “Issuer”), will issue $251.5 million of non-recourse, floating-rate notes (“Offered Notes,” the “Securities” or the “Offering”) at a weighted average cost of LIBOR+103 basis points. The Offered Notes include $203.42 million of Class A Notes, which were rated Aaa by Moody’s Investors Services, Inc. and will be issued at a coupon of LIBOR+80 basis points and $48.03 million of Class B Notes, rated Baa3 by Moody’s, which will be issued at a coupon of LIBOR+ 200 basis points. The Offered Notes are collateralized by floating rate commercial real estate first mortgage loans originated by the Company with a principal balance of $376.7 million. The Company will retain the subordinated notes and the preferred shares in the transaction, which is expected to close on or about July 13, 2017, subject to the satisfaction of customary closing conditions.

Robert C. Lieber, Chief Executive Officer of RSO said, “We are very pleased to have executed this transaction at the tightest level of any post-crisis CRE CLO.  We believe that the record tight print of RSO 2017-CRE5 is market recognition of the Company’s ability to originate and structure high-quality loans. When this CLO closes, RSO will have term financed $1.7 billion of our self-originated whole loans through the capital markets. This transaction demonstrates that RSO has a platform that resonates with market participants.”

The Securities will not be registered under the Securities Act of 1933 (the “Securities Act”), as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Offering was made privately in transactions exempt from the registration requirements of the Securities Act. This press release is not an offer to sell any securities of the Company or the issuer and is not soliciting an offer to buy such securities. This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission.

RSO is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt investments. The Company is externally managed by Resource Capital Manager, Inc., which is an indirect wholly-owned subsidiary of C-III Capital Partners LLC, a leading commercial real estate investment management and services company engaged in a broad range of activities. More information about RSO can be found at the company's website at www.resourcecapitalcorp.com or by contacting Marketing and Investor Relations at [email protected].

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “trend,” “will,” “continue,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “look forward” or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

Contact: 
Resource Capital Corp.
www.resourcecapitalcorp.com
[email protected]