Gramercy Cap Closes $1B CDO

Gramercy Capital Corp., a New York-based commercial real estate finance company, has closed a $1.0 billion collateralized debt obligation.The proceeds will be used partly to fund new investments, the company said. The Gramercy CDO offering consists of $810.5 million in investment-grade notes, bearing an interest rate of 49 basis points above the three-month London interbank offered rate, and $84.5 million in non-investment-grade notes on which Gramercy does not disclose the interest rate. In addition, the CDO includes $105 million in preferred shares, Gramercy said. The CDO matures in 2035. Most of the debt investments Gramercy had originated or acquired since its initial public offering last August (totaling $809.3 million) have been contributed to the CDO, according to the company. Gramercy, an affiliate of the SL Green office real estate investment trust, has the option of contributing another $190.7 million of assets to the offering within 120 days of its closing.