Lument Finance Trust, Inc. (LFT): debt financing — Lument Finance Trust closes $386.4M CRE financing; fourth CLO transaction

Lument Finance Trust, Inc.

Closed $386.4M LMF 2023-1 Financing collateralized by 25 first-lien floating-rate mortgage loans on 32 multifamily properties.
Placement of ~$270M investment-grade loan with private lender and $47M notes with Lument affiliate; LFT retained ~$69M subordinate interests.
Initial weighted average spread on senior debt of 314 bps over 1-month SOFR; collateral spread ~365 bps.
24-month reinvestment period allows principal repayments to be reinvested in qualifying mortgage assets.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Lument Finance Trust, Inc. incurred senior notes with ORIX Capital Markets, LLC and LMF 2023-1 Holder, LLC maturing Due 2032.

Instrument: senior notes
Counterparty: ORIX Capital Markets, LLC and LMF 2023-1 Holder, LLC
Maturity: Due 2032
Event: incurrence

Exact text from the filing

Pursuant to the Indenture, LMF 2023-1 issued the following six classes of notes: l $30.4 million principal amount of Class B Second Priority Secured Floating Rate Notes Due 2032 (the “Class B Notes”); l $16.9 million principal amount of Class C Third Priority Secured Floating Rate Notes Due 2032 (the “Class C Notes” and, together with the Class B Notes, the “Offered Notes”); l $7.7 million principal amount of Class D Fourth Priority Secured Floating Rate Notes Due 2032 (the “Class D Notes”); l $15.0 million principal amount of Class E Fifth Priority Secured Floating Rate Notes Due 2032 (the “Class E Notes”); l $10.6 million principal amount of Class F Sixth Priority Secured Floating Rate Notes Due 2032 (the “Class F Notes”); and l $35.3 million principal amount of Class G Income Notes Due 2032 (the “Class G Notes” and, together with the Class B Notes, the Class C Notes, the Class D Notes, the Class E Notes and the Class F Notes, the “Notes”).

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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Lument Finance Trust, Inc. incurred term loan of $270.4 million with Massachusetts Mutual Life Insurance Company, as lead lender, and the other lenders party thereto.

Instrument: term loan
Principal: $270.4 million
Counterparty: Massachusetts Mutual Life Insurance Company, as lead lender, and the other lenders party thereto
Event: incurrence

Exact text from the filing

pursuant to which the Lenders provided LMF 2023-1 with a $270.4 million senior secured floating rate loan

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Lument Finance Trust, Inc. entered into Collateral Management Agreement with Lument Investment Management, LLC valued at Appointment of LIM as collateral manager; management fee waived (effective 2023-07-12).

Action: entry
Counterparty: Lument Investment Management, LLC
Value: Appointment of LIM as collateral manager; management fee waived
Effective: 2023-07-12

Exact text from the filing

On the Closing Date, LMF 2023-1 entered into a Collateral Management Agreement with LIM, pursuant to which LMF 2023-1 appointed LIM as collateral manager (LIM in such capacity, the “Collateral Manager”) with respect to the LMF 2023-1 Mortgage Assets.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Lument Finance Trust, Inc. entered into Credit Agreement with Massachusetts Mutual Life Insurance Company valued at $270.4 million senior secured floating rate loan (Class A Loan) (effective 2023-07-12).

Action: entry
Agreement: credit facility
Counterparty: Massachusetts Mutual Life Insurance Company
Value: $270.4 million senior secured floating rate loan (Class A Loan)
Effective: 2023-07-12

Exact text from the filing

In connection with the LMF 2023-1 Financing, LMF 2023-1, LLC (“LMF 2023-1”), as borrower, Massachusetts Mutual Life Insurance Company (“Mass Mutual”), as lead lender, the other lenders party thereto from time to time (together with Mass Mutual, the “Lenders”), Computershare Trust Company, National Association (“Computershare”), as loan agent, and Wilmington Trust, National Association (the “Trustee”), as trustee, entered into a Credit Agreement dated July 12, 2023, pursuant to which the Lenders provided LMF 2023-1 with a $270.4 million senior secured floating rate loan (the “Class A Loan”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Lument Finance Trust, Inc. entered into Indenture and Security Agreement with Lument Commercial Mortgage Trust, Wilmington Trust, National Association, Computershare Trust Company, National Association valued at Issuance of six classes of notes: Class B ($30.4M), C ($16.9M), D ($7.7M), E ($15.0M), F ($10.6M), G (effective 2023-07-12).

Action: entry
Agreement: notes offering
Counterparty: Lument Commercial Mortgage Trust, Wilmington Trust, National Association, Computershare Trust Company, National Association
Value: Issuance of six classes of notes: Class B ($30.4M), C ($16.9M), D ($7.7M), E ($15.0M), F ($10.6M), G
Effective: 2023-07-12

Exact text from the filing

Also, in connection with LMF 2023-1 Financing, LMF 2023-1, as issuer, Lument Commercial Mortgage Trust (“LCMT”), as advancing agent, the Trustee and Computershare, as note administrator and as custodian, entered into an Indenture and Security Agreement dated July 12, 2023 (the “Indenture”).

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Lument Finance Trust, Inc. entered into Servicing Agreement with Lument Real Estate Capital, LLC valued at Appointment of Lument Real Estate Capital as servicer and special servicer (effective 2023-07-12).

Action: entry
Counterparty: Lument Real Estate Capital, LLC
Value: Appointment of Lument Real Estate Capital as servicer and special servicer
Effective: 2023-07-12

Exact text from the filing

On the Closing Date, LMF 2023-1, the Collateral Manager, Lument Real Estate Capital, LLC, as servicer and special servicer, LCMT, as advancing agent, the Trustee and Computershare, as note administrator, entered into a Servicing Agreement, pursuant to which LMF 2023-1 appointed Lument Real Estate Capital, LLC, an affiliate of the Collateral Manager, to act as servicer and special servicer for the LMF 2023-1 Mortgage Assets.

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Lument Finance Trust, Inc. filing history →

Source: SEC EDGAR

accession 0001104659-23-080397

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