The common stock of Blackstone Mortgage Trust Inc. closed at $26.81 per share on Thursday, which is $1.31 per share above what the company priced a 22.5 million share public offering after the markets closed on Wednesday.
Until May 6, Blackstone Mortgage Trust was known as
Gross proceeds from the offering are $574 million, which will grow to $660 million if the overallotment option is exercised. Originally Blackstone Mortgage Trust was looking to sell 16 million shares.
Proceeds will be used to originate and acquire senior mortgage loans and pari passu participations in existing senior mortgage loans, plus to originate and acquire additional commercial real estate loans.
According to an 8-K filing obtained via DisclosureNet.com, Blackstone Mortgage Trust has created a joint venture with Blackstone Holdings Finance Co. LLC called 42-16 Partners LLC. Blackstone Mortgage Trust will acquire Holdings Finance’s interest in the joint venture after the public offering closes.
Meanwhile, 42-16 has entered into a master repurchase agreement with Bank of America, which provides for aggregate advances of up to $250 million. That financing has already been drawn upon to provide funds to originate a loan for an office park on the West Coast, the 8-K said.
The agreement will remain in place once Blackstone Mortgage acquires all of 42-16 and will be used to finance the acquisition or origination of eligible loans.
Advances made under this agreement have an interest rate of Libor plus a margin between 175 basis points and 325 basis points depending on the type of purchased loan.
The agreement is due to expire on May 21, 2016; there are two one-year extension options.
