PASADENA, Calif., June 25, 2020 /PRNewswire/ -- Western Asset
Mortgage Capital Corporation (NYSE: WMC) (the "Company") today
announced that it has priced an aggregate $341.7 million of Mortgage-Backed Notes, Series
2020-1 (the "Notes") in a residential mortgage-backed
securitization comprised of a portfolio of residential whole loans.
The Notes, which initially will be issued by Arroyo Mortgage Trust
2020-1 in five classes, were priced with a weighted average fixed
interest rate of 1.9% per annum. All of the Notes are anticipated
to have a final payment date in March
2055. The Notes will be issued in a private placement to
qualified institutional investors. It is expected that S&P will
rate the Notes at closing. The anticipated S&P rating for the
Class A-1A Notes and the Class A-1B Notes is AAA(sf). The offering
is subject to customary closing conditions and is expected to close
on or about June 29, 2020.
"This is the Company's second securitization, enabling us to
finance these residential whole loan assets with longer-term fixed
rate financing at attractive levels," said Jennifer Murphy, Chief Executive Officer of the
Company.
The Notes are not registered under the Securities Act of 1933,
as amended (the "Securities Act"), and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements. The Notes may only be offered and sold in
the United States in accordance
with Rule 144A under the Securities Act. This press release does
not constitute an offer to sell or the solicitation of any offer to
buy nor shall there be any sale of the Notes in any jurisdiction in
which such offer, solicitation or sale would be unlawful under the
laws of such jurisdiction.
ABOUT WESTERN ASSET MORTGAGE CAPITAL
CORPORATION
Western Asset Mortgage Capital Corporation is a
real estate investment trust that invests in, acquires and manages
a diverse portfolio of assets consisting of Residential Whole
Loans, Commercial Whole Loans, Non-Agency CMBS, GSE Risk Transfer
Securities and to a lesser extent Agency CMBS, Agency RMBS,
Non-Agency RMBS and ABS. The Company's investment strategy may
change, subject to the Company's stated investment guidelines, and
is based on its manager Western Asset Management Company, LLC's
perspective of which mix of portfolio assets it believes provide
the Company with the best risk-reward opportunities at any given
time. The Company is externally managed and advised by Western
Asset Management Company, LLC, an investment advisor registered
with the SEC and a wholly-owned subsidiary of Legg
Mason, Inc.
On February 18, 2020, Franklin
Resources, Inc. ("Franklin") and Legg
Mason announced that they had entered into an agreement
under which Franklin would acquire Legg
Mason and its affiliates, including Western Asset Management
Company, LLC. The transaction is expected to close in
the third quarter of 2020 and is subject to customary closing
conditions. Upon completion of the transaction Western Asset
Management Company, LLC would become a wholly owned subsidiary of
Franklin.
FORWARD-LOOKING STATEMENTS
This press release
contains statements that constitute "forward-looking statements."
Operating results are subject to numerous conditions, many of which
are beyond the control of the Company, including, without
limitation, changes in interest rates; changes in the yield curve;
changes in prepayment rates; the availability and terms of
financing; general economic conditions; market conditions;
conditions in the market for mortgage related investments; and
legislative and regulatory changes that could adversely affect the
business of the Company; and other factors, including those set
forth in the Risk Factors section of the Company's annual report on
Form 10-K for the period ended December 31,
2019 and quarterly report on Form 10-Q for the fiscal
quarter ended March 31, 2020,
respectively, filed with the SEC. The Company undertakes no
obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
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SOURCE Western Asset Mortgage Capital Corporation