Granite Point Upsizes JPMorgan Facility to $651 Million
Granite Point Mortgage Trust has expanded its financing facility with JPMorgan Chase Bank to $651 million, replacing debt associated with two commercial real estate collateralized loan obligations (CRE CLOs). The company transferred the assets from GPMT 2021-FL3 and GPMT 2021-FL4 to the repurchase financing facility with JPMorgan.
The refinancing allows Granite Point to reduce its weighted average funding cost by approximately 38 basis points, from SOFR plus 2.38% to SOFR plus 2%. This decrease in spread will lower the company's interest expense on the transferred assets compared to the previous CLO structure.
The transaction consolidates the financing of Granite Point's remaining legacy CLO assets into a larger bilateral facility with JPMorgan, providing approximately $130 million more capacity than the original debt outstanding. The agreement includes three additional one-year extension options, potentially extending the maturity of the facility through July 2028.