Cleary Gottlieb is representing Credit Suisse as financial advisor to Capstead Mortgage Corporation (Capstead), a real estate investment trust (REIT), in its merger with Benefit Street Realty Trust (Benefit Street), a publicly registered, non-listed REIT.
The transaction was announced on July 26, 2021, and is expected to close in in the fourth quarter of 2021.
The combined company, to be called Franklin BSP Realty Trust, will transition the capital base of Capstead, a residential mortgage REIT, into commercial mortgage loans where BSPRT is focused. The transaction provides Capstead common stockholders with a cash payment at closing equal to a 15.75% premium to diluted book value per share and an ongoing ownership interest in Franklin BSP Realty Trust with the potential for higher returns and dividend yields. Franklin BSP Realty Trust will be the fourth-largest commercial mortgage REIT with nearly $2 billion of pro forma equity.
For more information, please see the press release here.