NEW YORK--(BUSINESS WIRE)--On April 2, 2020, TPG RE Finance Trust, Inc. (NYSE: TRTX) sold CRE debt securities with an aggregate face amount of approximately $572 million. These securities represented the entirety of the Company’s CRE debt securities portfolio, other than those bonds with a AAA rating. After satisfaction of approximately $429 million under the Company’s secured revolving repurchase facilities, the Company’s exposure to mark-to-market debt against its remaining CRE debt securities portfolio was approximately $166 million, which debt was secured by AAA rated CRE debt securities with an aggregate face amount of approximately $209 million. As of April 6, 2020, there are no outstanding and unpaid margin calls with respect to any of the Company’s secured revolving repurchase facilities.
Together with other sales of CRE debt securities, the Company has reduced its overall CRE debt securities portfolio from approximately $961 million as of March 1, 2020 to approximately $209 million as of April 6, 2020, and its associated liabilities from approximately $825 million to approximately $166 million over the same period. The Transaction, and other sales of CRE debt securities since March 1, will cause the Company to recognize an aggregate loss on sale of approximately $179 million, which is estimated to result in a reduction in book value of approximately $2.34 per share.
Update on Financing Arrangements
The Company has engaged Houlihan Lokey Inc. as an advisor to explore financing and strategic alternatives. In addition, the Company has received notices from certain of its lenders under their respective securities and whole loan secured revolving repurchase facilities indicating that they were reserving their rights under their respective agreements with respect to certain defaults, some of which no longer exist while others persist. However, no lender has accelerated the Company’s obligations under such agreements. The Company continues to work constructively with its lenders and Houlihan Lokey to address these circumstances.
ABOUT TRTX
TPG RE Finance Trust, Inc. is a commercial real estate finance company that focuses primarily on originating, acquiring, and managing first mortgage loans and other commercial real estate-related debt instruments 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 TPG. TPG is a global alternative asset firm with a 25-year history and more than $119 billion of assets under management. For more information regarding TRTX, visit www.tpgrefinance.com.
