NEW YORK–(BUSINESS WIRE)–Apr 27, 2020–AG Mortgage Funding Belief, Inc. (NYSE: MITT) (the “Company”) introduced as we speak that the Firm and sure of its associates have entered into a brand new Forbearance Settlement with every of the next financing counterparties: Financial institution of America, N.A., BofA Securities, Inc., Credit score Suisse Securities (USA) LLC, Credit score Suisse AG, Credit score Suisse Worldwide, Barclays Capital Inc., Barclays Financial institution PLC, Wells Fargo Financial institution, Nationwide Affiliation and Wells Fargo Securities, LLC (every, a “Participating Counterparty,” and collectively, the “Participating Counterparties”). The Firm expects Société Général S.A, Goldman Sachs Financial institution USA and Goldman, Sachs & Co. LLC to enter into the brand new Forbearance Settlement inside the one enterprise day interval allowed underneath the brand new Forbearance Settlement. As beforehand introduced on April 13, 2020, the Firm had entered into an unique Forbearance Settlement with the Collaborating Counterparties (together with Société Général S.A., Goldman Sachs Financial institution USA and Goldman, Sachs & Co. LLC) which was scheduled to run out as we speak.Below the phrases of the brand new Forbearance Settlement, the Collaborating Counterparties have agreed to forbear from exercising any rights or cures till 4:30 P.M., EDT on June 1, 2020 (until terminated sooner upon the incidence of sure occasions) underneath their respective financing agreements, together with promoting collateral to implement margin calls.In reference to the unique Forbearance Settlement, the Firm additionally granted the Collaborating Counterparties a safety curiosity in all property of the Firm, together with the proceeds of the Notice, as amended by the Notice Modification (every as outlined beneath).In the course of the interval lined by the brand new Forbearance Settlement, the Firm intends to proceed to pursue asset gross sales and discover different potential transactions to scale back its obligations underneath its financing preparations and lift cash to bolster its liquidity.In reference to the unique Forbearance Settlement, on April, 10, 2020, the Firm issued a secured promissory word (the “Note”) to AG REIT Administration, LLC, the Firm’s exterior supervisor, evidencing a $10 million loan made by the Supervisor to the Firm (the “Initial Advance”). The obligations underneath the Notice are assured by sure subsidiaries of the Firm. The Preliminary Advance is due on March 31, 2021 and accrues curiosity on the unpaid principal stability at 6.0% each year. Curiosity on the Notice shall be payable month-to-month in type by the addition of such accrued month-to-month curiosity to the excellent principal stability of the Notice. On April 27, 2020, the Firm and the Supervisor entered into an modification to the Notice (the “Note Amendment”) to replicate an extra $10 million of cash loaned by the Supervisor to the Firm (the “Additional Advance”). Below the phrases of the Notice Modification, the whole principal quantity excellent underneath the Notice was elevated from $10 million to $20 million. The Further Advance is due on July 27, 2020 and accrues curiosity on the unpaid principal stability at 6.0% each year.The Supervisor has agreed to subordinate the obligations of the Firm with respect to the Notice and liens held by the Supervisor for the safety of the efficiency of the Firm’s obligations underneath the Notice to the Firm’s obligations to the Collaborating Counterparties pursuant to the brand new Forbearance Settlement and associated paperwork.The phrases of the Notice Modification have been unanimously authorized by the unbiased members of the Board of Administrators of the Firm.As beforehand reported, the Firm has engaged Hunton Andrews Kurth LLP as authorized counsel and FTI LLC as monetary advisor in reference to its financings and associated issues.Evercore has been engaged by the unbiased members of the Board to advise them in reference to a evaluation of capital elevating and strategic choices for the Firm. Fried Frank Harris Shriver & Jacobson LLP is serving as authorized advisor to the unbiased members of the Board.ABOUT AG MORTGAGE INVESTMENT TRUST, INC.AG Mortgage Funding Belief, Inc. is a hybrid mortgage REIT that opportunistically invests in and manages a diversified risk-adjusted portfolio of Company RMBS and Credit score Investments, which embrace Residential Investments and Business Investments. AG Mortgage Funding Belief, Inc. is externally managed and suggested by AG REIT Administration, LLC, a subsidiary of Angelo, Gordon & Co., L.P., an SEC-registered funding adviser that makes a speciality of various funding actions.FORWARD LOOKING STATEMENTSThis press launch contains “forward-looking statements” inside the which means of the secure harbor provisions of the USA Non-public Securities Litigation Reform Act of 1995 associated to the Firm’s excellent indebtedness and the standing of our ongoing discussions with our repurchase counterparties, amongst others. Ahead-looking statements are based mostly on estimates, projections, beliefs and assumptions of administration of the Firm on the time of such statements and aren’t ensures of future efficiency. Ahead-looking statements contain dangers and uncertainties in predicting future outcomes and situations. Precise outcomes and outcomes might differ materially from these projected in these forward-looking statements as a consequence of quite a lot of elements, together with, with out limitation, adjustments in rates of interest, adjustments in default charges, adjustments within the yield curve, adjustments in prepayment charges, the provision and phrases of financing, adjustments out there value of our property, basic financial situations, situations out there for Company RMBS, Non-Company RMBS and CMBS securities, Extra MSRs and loans, our capability to foretell and management prices, situations in the actual property market, legislative and regulatory adjustments that might adversely have an effect on the enterprise of the Firm, our negotiations with our repurchase financing counterparties and the Supervisor, our capability to barter additional extensions of the Forbearance Interval and the maturity of the Further Advance, if required, with the Collaborating Counterparties and the Supervisor, respectively, and the continuing unfold and financial results of the novel coronavirus (COVID-19). Further info regarding these and different threat elements are contained within the Firm’s filings with the SEC, together with its most up-to-date Annual Report on Type 10-Okay and subsequent filings. Copies can be found freed from cost on the SEC’s web site, http://www.sec.gov/. All info on this press launch is as of April 27, 2020. The Firm undertakes no obligation to replace any forward-looking statements to replicate any change in its expectations or any change in occasions, situations or circumstances on which any such assertion relies.View supply model on businesswire.com:https://www.businesswire.com/information/dwelling/20200427005892/en/ CONTACT: AG Mortgage Funding Belief, Inc.Investor Relations(212) 692-2110 email@example.comKEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY INSURANCE FINANCE BANKING PROFESSIONAL SERVICES REIT OTHER CONSTRUCTION & PROPERTY RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: AG Mortgage Funding Belief, Inc.
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PUB: 04/27/2020 07:35 PM/DISC: 04/27/2020 07:35 PMhttp://www.businesswire.com/information/dwelling/20200427005892/en