Franklin BSP Realty to Acquire NewPoint Holdings with Strategic Financing Plan

Franklin BSP Realty Trust (FBRT) has announced its acquisition of NewPoint Holdings, a major player with a $54.7 billion servicing portfolio, which is expected to enhance FBRT's predictable and durable income stream. In supporting this acquisition, FBRT plans to leverage its existing cash reserves and raise further capital through debt and equity issuance. The operational structure will incorporate NewPoint into a taxable REIT subsidiary, optimizing the financial performance through strategic asset-liability management, including the mortgage servicing rights maintained on FBRT’s consolidated balance sheet. This acquisition is part of FBRT’s broader strategy to grow its book value. Reed Smith, in collaboration with Hogan Lovells, served as legal advisors, with their Financial Industry Group partners Randy Eckers, Michael Estreicher, and Will Atherton playing key roles in advising FBRT.