Fitch: Ladder Capital notes BB

Fitch Ratings said it assigned a BB rating to the $300 million senior unsecured notes issued by Ladder Capital Finance Holdings LLLP and Ladder Capital Finance Corp., subsidiaries of Ladder Capital Corp.

The notes have a coupon of 5 7/8% and will mature Aug. 1, 2021. The notes are callable, in whole or part, at any time on or after Aug. 1, 2017 at the issuer’s option.

The notes rank equally with Ladder’s other unsecured debt outstanding, Fitch said, and the ratings have been equalized with Ladder’s existing senior unsecured debt rating of BB and issuer default rating of BB.

Fitch said does not expect there to be a material impact on the company’s leverage levels as a result of the issuance, as proceeds from the issuance will be used to repay certain of Ladder’s outstanding debt borrowings and for general corporate purposes.

The ratings reflect the company’s conservative leverage and operating profile, strong credit and performance trends, good liquidity and experienced management team, the agency said.

Rating constraints include the company’s limited financial flexibility due to a high proportion of secured funding, exposure to cyclical commercial real estate markets, operating history limited to post-crisis and key-man risk, Fitch said.

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