Gramercy Closes $1.1B Commercial Real Estate CDO

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NEW YORK CITY-Gramercy Capital Corp. closed a $1.1 billion commercial real estate collateralized debt obligation, its third commercial real estate CDO transaction as GlobeSt.com previously reported. Gramercy used the majority of proceeds from the issuance of CDO 3 to retire outstanding borrowings under existing secured repurchase agreements, to acquire a substantial portion of Gramercy’s existing fixed-rate commercial real estate loans currently financed in Gramercy’s two existing CDOs and to finance a $752.1 million portfolio of AAA-rated CMBS.

CDO 3 will create almost $350 million of immediate financing capacity in its existing CDOs and secured repurchase agreements and will further reduce Gramercy’s weighted average cost of debt capital. CDO 3 issued $1 million of bonds rated AAA through BBB-, and $54.5 million of interests that are not rated investment-grade.