AG Mortgage Investment Trust, Inc. Provides Company Update
The Company’s aggregate outstanding financing arrangements with the Participating Counterparties included under the Forbearance Agreement are approximately
Under the terms of the Forbearance Agreement, the Participating Counterparties have agreed to forbear from exercising any rights or remedies for 15 days (unless terminated sooner upon the occurrence of certain events) under their respective financing agreements, including selling collateral to enforce margin calls.
In connection with the Forbearance Agreement, the Company also granted the Participating Counterparties a security interest in all assets of the Company, including the proceeds of the Note (as defined below).
During the period covered by the Forbearance Agreement, the Company intends to continue to consider asset sales and explore other potential transactions to reduce its obligations under its financing arrangements and raise cash to bolster its liquidity.
In connection with the Forbearance Agreement, on April, 10, 2020, the Company issued a secured promissory note (the “Note”) to
The Manager has agreed to subordinate the obligations of the Company with respect to the Note and liens held by the Manager for the security of the performance of the Company’s obligations under the Note to the Company’s obligations to the Participating Counterparties pursuant to the Forbearance Agreement and related documents.
The terms of the Note were unanimously approved by the independent members of the Board of Directors of the Company.
As previously reported, the Company has engaged
Evercore has been engaged by the independent members of the Board to advise them in connection with a review of capital raising and strategic options for the Company.
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FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 related to the Company’s outstanding indebtedness and the status of our ongoing discussions with our repurchase counterparties, among others. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results and outcomes could differ materially from those projected in these forward-looking statements due to a variety of factors, including, without limitation, changes in interest rates, changes in default rates, changes in the yield curve, changes in prepayment rates, the availability and terms of financing, changes in the market value of our assets, general economic conditions, conditions in the market for Agency RMBS, Non-Agency RMBS and CMBS securities, Excess MSRs and loans, our ability to predict and control costs, conditions in the real estate market, legislative and regulatory changes that could adversely affect the business of the Company and the ongoing spread and economic effects of the novel coronavirus (COVID-19). Additional information concerning these and other risk factors are contained in the Company’s filings with the
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Investor Relations
(212) 692-2110
ir@agmit.com
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