FBRT · Franklin BSP Realty Trust, Inc.

Franklin BSP Realty Trust, through its consolidated subsidiary BSPRT 2026-FL13 Issuer, LLC, executed a significant financing transaction involving the securitization of approximately $880.4 million in commercial real estate mortgage loans. The Issuer sold approximately $778.1 million in secured floating rate notes across nine classes in a private placement under Rule 144A. The transaction structure involves standard securitization parties, including Wilmington Trust as Trustee and Computershare as Note Administrator and Custodian, with NewPoint Real Estate Capital acting as the primary servicer.

The proceeds are designated to repay existing borrowings under the Company's credit facilities, fund future loan originations and investments, and for general corporate purposes. This suggests a refinancing and recycling of capital strategy, allowing the Company to optimize its funding costs while maintaining exposure to the underlying mortgage assets through its ownership of the Issuer's equity and preferred shares.

The notes carry interest rates ranging from 1.50% to 4.00% over 1 Month CME Term SOFR, reflecting a priority payment structure typical of CMBS transactions. The stated maturity is October 2043, though the initial weighted average life of the offered notes is projected to be significantly shorter, ranging from 3.09 years for the Class A Notes to 4.76 years for the Class E Notes. The structure includes limited recourse provisions, meaning note holders rely primarily on the cash flows from the underlying mortgage portfolio, with no recourse to the Company's other assets beyond the pledged collateral. This transaction provides the Company with efficient financing while transferring certain credit risks to note investors.