NEW YORK, Oct. 26, 2012 /PRNewswire/ -- NorthStar Real Estate Income Trust, Inc. ("NorthStar Income") announced today the pricing of a $351 million CMBS transaction at a weighted average coupon of LIBOR + 1.63%. The CMBS transaction is collateralized by commercial real estate first mortgages originated by NorthStar Income and its sponsor, NorthStar Realty Finance Corp. ("NRF"). A total of $228 million of investment grade bonds will be issued, representing an advance rate of approximately 65%. NorthStar Income and NRF will retain an equity interest in the CMBS transaction equal to $69 million and $54 million, respectively. NorthStar Income expects to earn a yield of approximately 15% on its invested equity in the CMBS transaction, inclusive of fees and estimated transaction expenses, assuming all of the underlying loans are repaid at their initial maturity.
The bonds are being offered inside the United States to (1) qualified institutional buyers within the meaning of Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and (2) to other institutional investors that are accredited investors within the meaning of rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act, and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The bonds have not been registered under the Securities Act or applicable state or foreign securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the bonds.
About NorthStar Real Estate Income Trust, Inc.
NorthStar Income is a REIT formed to originate, invest in, and manage a diversified portfolio of commercial real estate debt, commercial real estate securities and select commercial real estate equity investments.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words like "will," "expects," "look forward" and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; NorthStar Income can give no assurance that its expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results. Variations of assumptions and results may be material. Factors that could cause actual results to differ materially from NorthStar Income's expectations include, but are not limited to, whether the CMBS transaction closes on the terms anticipated, if at all, and the timing of any such closing as well as whether the underlying loans are repaid at their initial maturity. Such forward-looking statements speak only as of the date of this press release. NorthStar Income expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
SOURCE NorthStar Real Estate Income Trust, Inc.