Fortress Credit Realty Income Trust entered into a Master Repurchase and Securities Contract Agreement with Capital One, National Association on September 30, 2026. The agreement, executed by the Company's subsidiary, FCR CRE CONA Seller LLC, establishes a financing facility for the acquisition and origination of loans.
The Capital One Repurchase Agreement provides for up to $750 million in aggregate financing. The facility consists of an initial $400 million availability, with an additional $350 million available subject to Capital One's approval and the satisfaction of specific conditions.
Under the terms of the agreement, the facility will be used for the purchase, sale, and repurchase of mortgage loans, mezzanine loans, and participation interests in such loans. Interest on advances accrues at a rate equal to Term SOFR for a one-month period plus a margin agreed upon by the Buyer and the Seller for each transaction.
The initial availability period for the facility expires on September 30, 2027. The Company has the option to extend the agreement for three one-year periods, with the first two extensions being at the Company's discretion and the third subject to Capital One's approval.
In connection with the repurchase agreement, the Company entered into a Guaranty Agreement dated September 30, 2026. This guaranty requires the Company to guarantee losses related to non-recourse carve-outs, a percentage of outstanding advances until less than five assets remain financed, and certain financial covenants including minimum net worth, liquidity, and maximum leverage.
The Company is liable under the guaranty for costs, damages, and losses resulting from "bad boy" events. The guaranty may become fully recourse to the Company if the Company or its subsidiary becomes the subject of a bankruptcy or insolvency proceeding.
