REIT Closes $472MM Debt Offering

Newcastle Investment Corp., a New York-based real estate investment trust, has closed a $472 million nonrecourse debt offering issued by Newcastle CDO II Ltd. and Newcastle CDO II Corp.Newcastle said it has acquired approximately 85% of the collateral that will ultimately secure the collateralized debt obligation. The company said it expects the collateral value to total about $520 million upon completion, of which 64% will be commercial mortgage-backed securities, 23% will be senior unsecured debt of REITs, and 13% will be asset-backed securities. Newcastle said it has a $53 million equity interest in the transaction, which is part of its strategy of investing in credit-sensitive real estate securities and financing them with match-funded debt.