FS Credit Real Estate boosts MM-1 capacity and extends maturity
FS Credit Real Estate Income Trust amended its MM-1 credit facility. The Fourth Amendment increases the maximum facility amount to $1,500,000,000, reduces the applicable spread to 2.05%, and extends the scheduled maturity to September 17, 2034. The facility also now provides for the financing of certain real estate owned assets.
The borrower is FS CREIT Finance MM-1 LLC, with Wells Fargo Bank as administrative agent and Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company as lenders. The Company entered into a Guaranty Agreement under which it guarantees certain obligations; on any date of determination, the maximum payable equals 25% of advances outstanding attributable to the real estate owned assets as of the date remedies are first exercised or a claim is made.
Positive
- None.
Negative
- None.
Insights
Bigger, cheaper, longer-dated facility with targeted guaranty cap.
The amendment lifts capacity to $1,500,000,000, trims the spread to 2.05%, and pushes final maturity to September 17, 2034. It also permits financing of certain real estate owned (REO) assets, aligning the facility with asset recovery workflows.
Counterparties include Wells Fargo as administrative agent and lenders led by Massachusetts Mutual and C.M. Life. The Company provides a guaranty limited to 25% of advances attributable to REO assets, triggered when remedies are exercised or a claim is made, which frames downside exposure to that collateral subset.
Key dependencies are utilization levels and collateral performance. Subsequent filings may provide utilization, covenant detail, and any REO financing activity under the amended terms.
8-K Event Classification
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| Item 1.01. | Entry into a Material Definitive Agreements. |
MM-1 Facility – Fourth Amendment to the Amended and Restated Loan and Servicing Agreement
On October 27, 2025, FS CREIT Finance MM-1 LLC (an indirectly wholly owned subsidiary of FS Credit Real Estate Income Trust, Inc. (the “Company”)), as borrower, entered into a Fourth Amendment to the Amended and Restated Loan and Servicing Agreement, originally dated as of April 27, 2022, with Wells Fargo Bank, National Association, as administrative agent, Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company, as lenders, and the other parties thereto. The amendment, among other things, (a) increases the maximum facility amount from $1,000,000,000 to $1,500,000,000, (b) reduces the applicable spread from 2.30% to 2.05%, (c) extends the scheduled maturity date from September 20, 2031 to September 17, 2034 and (d) provides for the financing of certain real estate owned assets. In connection therewith, the Company entered into a Guaranty Agreement pursuant to which the Company, as guarantor, guarantees the payment of certain obligations, provided that on any date of determination the maximum amount payable under the Guaranty Agreement will equal 25% of the full amount of the advances outstanding attributable to the real estate owned assets as of the date that the administrative agent or any other secured party first exercises remedies or otherwise makes a claim under the Guaranty Agreement.
The material terms of the Fourth Amendment to the Amended and Restated Loan and Servicing Agreement described above are qualified in their entirety by the agreement attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
The material terms of the Guaranty Agreement described above are qualified in their entirety by the agreement attached as Exhibit 10.2 to this Current Report on Form 8-K and incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information contained in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
| EXHIBIT NUMBER |
DESCRIPTION | |
| 10.1 | Fourth Amendment to Amended and Restated Loan and Servicing Agreement, dated as of October 27, 2025, by and among FS CREIT Finance MM-1 LLC, Massachusetts Mutual Life Insurance Company, C.M. Life Insurance Company, Barings Direct Investments LLC, FS CREIT Finance Holdings LLC and the other parties identified therein. | |
| 10.2 | Guaranty Agreement, dated as of October 27, 2025, by FS Credit Real Estate Income Trust, Inc. in favor of Wells Fargo Bank, National Association, as the administrative agent, for the benefit of the Secured Parties (as defined in the Fourth Amendment to Amended and Restated Loan and Servicing Agreement). | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FS Credit Real Estate Income Trust, Inc. | ||
| Date: October 31, 2025 | By: | /s/ Stephen S. Sypherd |
| Stephen S. Sypherd | ||
| Vice President, Treasurer and Secretary | ||