MoFo represented Exantas Capital Corp. (NYSE: XAN), an externally managed REIT that specializes in commercial real estate loans and credit investments, such as CMBSs, in connection with strategic financing agreements that will provide Exantas with up to $375 million of capital and in matters related to the acquisition of Exantas’s management contract by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., which is a middle market commercial real estate lender. The financing consists of a $250 million seven-year senior secured financing facility provided by Massachusetts Mutual Life Insurance Company (MassMutual) and the issuance of up to $125 million of 12% senior unsecured notes and warrants to purchase an aggregate of up to 3.5 million shares of Exantas’s common stock to MassMutual and a fund managed by Oaktree Capital Management, L.P.
The new financing will provide Exantas with the ability to fully repay its existing repurchase and warehouse facilities and with approximately $165 million of liquidity to implement the Company’s business plan to preserve and grow book value and earnings.
The definitive agreements for the transaction were signed on July 31, 2020.
The deal team included partners Tracy Bacigalupo, Spencer Klein, Geoff Peck, Heath Linsky, Justin Salon, and Jay Blaivas and associates Aisulu Masylkanova, Joe Sulzbach, Mara Goodman, and Mike Maroni, law clerk Thomas Belcastro, and paralegals Daniel Lopez and Monet Zaccarelli. Associates Katherine Erbeznik, Fred Muna, Marianne Marchiori, and Meredith Carr also assisted.