Orrick Advises Granite Point Mortgage Trust on IPO and $1.8 Billion Portfolio Acquisition

June.28.2017

Orrick has advised Granite Point Mortgage Trust, a mortgage real estate investment trust externally managed by Pine River Capital Management, on its initial public offering. The Company priced 10,000,000 shares of common stock at a price of $19.50 per share, and granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock at the IPO price. The shares trade on the New York Stock Exchange under the symbol “GPMT.”

Concurrent with the closing of the offering, Granite Point is acquiring from Two Harbors Investment Corp. an $1.8 billion portfolio of commercial real estate loans and other commercial real estate debt investments, in exchange for equity interests in Granite Point.

Granite Point will receive net proceeds of approximately $181.3 million after deducting underwriting discounts and commissions and estimated offering expenses. The company intends to use the net proceeds of the offering to acquire additional senior floating rate commercial mortgage loans and other debt and debt-like commercial real estate investments.

The Orrick team advising Granite Point on its IPO and acquisition of its initial portfolio was led by capital markets partner Karen Dempsey and included of counsel Lynne Hirata, associates Melissa Frayer and Conner Pine, and partner Grady Bolding on tax matters.