Claros Mortgage Trust has closed a $500 million, four-year secured term loan credit facility provided by investment funds and accounts managed by HPS Investment Partners. The new facility carries a floating interest rate of SOFR plus 675 basis points and can be prepaid at any time, subject to certain conditions.
The company said it used the net proceeds from the financing, along with cash on hand, to fully retire its $556.2 million Term Loan B, which was scheduled to mature on August 9, 2026. Management framed the transaction as a balance sheet and capital structure move designed to extend corporate debt maturities and create flexibility as it works through watchlist loans and REO assets, reduces leverage, and positions the platform for a future return to loan origination activity.
As part of the financing package, the company issued 10-year detachable warrants to purchase an aggregate of 7,542,227 shares of common stock at an exercise price of $4.00 per share, subject to potential adjustments. The company said the exercise price represents an approximately 46 percent premium to the January 30, 2026, closing price of its common stock.
The transaction also included covenant work across the company’s financing stack. Claros said it aligned select financial covenants across its facilities and the new term loan, creating a more consistent covenant framework that it described as more favorable.
The financing connects Claros with a major private credit platform that is now part of BlackRock following BlackRock’s acquisition of HPS. Claros also highlighted the relationship element of bringing in HPS as a capital provider, linking management and shareholders with the lender.
Claros Mortgage Trust is a real estate investment trust focused primarily on originating senior and subordinate loans on transitional commercial real estate assets in major U.S. markets, and is externally managed and advised by an affiliate of Mack Real Estate Credit Strategies. HPS described itself as a global credit-focused alternative investment firm investing across privately negotiated senior debt, junior capital solutions, liquid credit, asset-based finance, and real estate, and said it managed approximately $179 billion of assets as of September 30, 2025.
Support: On the advisory side, Evercore served as lead financial advisor, and J.P. Morgan served as financial advisor. Legal advisors to Claros included Ropes & Gray LLP and Latham & Watkins LLP, while Milbank LLP served as counsel to HPS.
KEY QUOTE:
“The successful completion of this financing stabilizes our capital structure by extending the maturity of the company’s corporate debt. This provides us with flexibility to support the continued execution of the company’s business plan, including resolution of watchlist loans and REO assets, deleveraging the balance sheet and repositioning the Company in preparation for future origination activity. It also establishes a relationship between management and our shareholders with HPS, a part of BlackRock, the largest asset manager in the world,”
Richard Mack, Chief Executive Officer and Chairman of CMTG
