New York Mortgage Trust Arranges Three Year Financing Secured by Pool of Residential Mortgage Loans
NEW YORK, Dec 28, 2012 (Menafn - GLOBE NEWSWIRE via COMTEX) --New York Mortgage Trust, Inc. NYMT ("NYMT" or the "Company") announced today its entry, through a wholly-owned subsidiary, into a securitization transaction with a three-year term for the purpose of financing certain residential mortgage loans owned by the Company having an estimated aggregate market value of approximately 59.6 million (the "Mortgage Loans"). The Company received gross cash proceeds of approximately 38.7 million before deducting expenses associated with the transaction.
Pursuant to the terms of the securitization agreements, the Company transferred the Mortgage Loans to NYMT Residential, LLC (the "Depositor"), a wholly-owned subsidiary of NYMT, which in turn transferred the Mortgage Loans to NYMT Residential 2012-RP1, LLC (the "Issuer"), a special purpose entity, in exchange for the proceeds set forth above.
As part of the financing, the Issuer issued notes in an aggregate principal amount equal to the gross cash proceeds from the financing. The notes bear interest that is payable monthly at a per annum rate equal to 4.25% and are scheduled to mature in December 2015, at which time the Issuer will transfer the Mortgage Loans serving as collateral back to the Company. During the first two years of the financing (the "Revolving Period"), no principal payments will be made on the notes. All cash proceeds generated by the Mortgage Loans and received by the Issuer during the Revolving Period, after payment of interest on the notes, reserve amounts and certain other transaction expenses, will be available for the purchase by the Issuer of additional mortgage loans that satisfy certain eligibility criteria.
Steven R. Mumma, the Company's Chief Executive Officer and President, commented: "This structure allows for the reinvestment by us of loan proceeds from sales, refinancing's or other resolutions, subject to certain deductions, for a period of two years, thereby providing us with greater funding flexibility for future loan purchases. We believe funding structures similar to this transaction and our two multi-family CMBS securitizations completed in 2012 provide the Company with improved profitability while reducing credit and liquidity risks."
The Mortgage Loans serving as collateral for the notes are performing and re-performing, fixed- and adjustable-rate, fully-amortizing, interest-only and balloon, seasoned mortgage loans secured by first liens on one- to four-family properties. The Company expects to use the net proceeds from this transaction for general corporate purposes, including funding new investments in accordance with its investment strategy or to repay indebtedness.
The notes were privately placed with a qualified institutional buyer in a transaction qualifying for resale under Rule 144A.
About New York Mortgage Trust
New York Mortgage Trust, Inc. is a Maryland corporation that has elected to be taxed as a real estate investment trust ("REIT"). The Company invests in mortgage-related and financial assets and targets multi-family CMBS and Agency RMBS, including Agency RMBS consisting of fixed-rate, adjustable-rate and hybrid adjustable-rate RMBS and Agency IOs consisting of interest only and inverse interest only RMBS that represent the right to the interest component of the cash flow from a pool of mortgage loans.
When used in this press release, in future filings with the Securities and Exchange Commission ("SEC") or in other written or oral communications, statements which are not historical in nature, including those containing words such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "would," "could," "goal," "objective," "will," "may" or similar expressions, are intended to identify "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions.
Forward-looking statements are based on the Company's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to the Company. These risks and uncertainties and other factors, including the risk factors described in the Company's periodic reports filed with the SEC, could cause the Company's actual results to differ materially from those projected in any forward-looking statements it makes. All forward-looking statements speak only as of the date on which they are made. New risks and uncertainties arise over time and it is not possible to predict those events or how they may affect the Company. Except as required by law, the Company is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT: For Further Information
AT THE COMPANY
Steven R. Mumma,
Chief Executive Officer and President
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