NEWTON, Mass.--(BUSINESS WIRE)--Tremont Mortgage Trust (Nasdaq: TRMT) today announced that it has commenced a public offering of 12,500,000 of its common shares. TRMT expects to use a portion of the net proceeds from this offering to repay the entire amount outstanding under the credit agreement with its manager (the Manager) as lender (the RMR Credit Agreement), at which time the RMR Credit Agreement will be terminated. TRMT also expects to use a portion of the net proceeds from this offering to reduce borrowings under its master repurchase facility. Any remaining net proceeds will be used for general business purposes, including funding investment activities. It is also contemplated that the underwriters will be granted a 30-day option to purchase up to an additional 1,875,000 common shares. The Manager intends to purchase from the underwriters 20% of the common shares being sold in this offering, which is 2,500,000 common shares (or 2,875,000 common shares if the underwriters exercise their option to purchase additional common shares in full).

The joint bookrunning managers for this offering are Morgan Stanley, Citigroup, RBC Capital Markets, UBS Investment Bank, JMP Securities and J.P. Morgan. The co-managers for this offering are Janney Montgomery Scott, JonesTrading and Oppenheimer & Co.