NEW YORK, June 29, 2020 /PRNewswire/ -- MFA Financial,
Inc. (NYSE: MFA) ("MFA" or the "Company") announced today that it
has completed the funding of the previously-reported $500 million senior secured term loan with
certain funds, accounts and/or clients managed by affiliates of
Apollo Global Management, Inc. ("Apollo") and affiliates of Athene
Holding Ltd. ("Athene").
MFA has also closed on the funding of the previously-reported
non-mark-to-market, term borrowing facility with Barclays, Athene
and Apollo, pursuant to which the lenders have provided financing
in an aggregate amount of approximately $1.6
billion. Also, the Company closed on additional
non-mark-to-market, term financing facilities with Athene, Apollo
and Credit Suisse, totaling approximately $475 million of additional financing.
These facilities are secured by certain mortgage loans and
other assets of the Company.
In connection with the completion of the financing transactions
discussed above, the Company has also satisfied all outstanding
margin calls with the counterparties to its repurchase agreement
financing arrangements and exited from the forbearance arrangements
under the previously-reported Third Forbearance Agreement, which it
had entered into on June 1,
2020. In connection with the exit from forbearance, the
Company and its counterparties have executed a Reinstatement
Agreement pursuant to which each counterparty agreed to permanently
waive existing and prior events of default identified therein and
to reinstate certain of the repurchase agreements (on such modified
terms and conditions as agreed to by the parties). In
addition, the counterparties terminated and released the related
security interests granted to them by the Company during
forbearance.
With the completion of the various financing transactions and
its exit from forbearance, MFA has repositioned its balance sheet
with more durable funding for its investment assets and
significantly increased its liquidity. After giving effect to
these transactions, as of June 26,
2020, approximately 67%, or $3.4
billion, of MFA's debt financing (including
securitization indebtedness) is comprised of longer-term,
non-mark-to-market indebtedness, thereby reducing MFA's reliance on
shorter-term, mark-to-market repurchase financing
arrangements. Together with the other actions that MFA has taken
over the past several months to increase liquidity and reduce
leverage, as of June 26, 2020, the
Company had total cash balances of approximately $630 million and a debt to equity ratio of
approximately 2.0:1.
Houlihan Lokey served as
financial advisor to MFA. Barclays served as exclusive
financial advisor to Apollo and Athene.
MFA Financial, Inc. is a real estate investment
trust primarily engaged in the business of investing, on a
leveraged basis, in residential mortgage assets, including
residential whole loans and residential mortgage-backed
securities.
Cautionary Language Regarding Forward-Looking
Statements
When used in this press release or other written or oral
communications, statements which are not historical in nature,
including those containing words such as "will," "believe,"
"expect," "anticipate," "estimate," "plan," "continue," "intend,"
"should," "could," "would," "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. Statements regarding the following subjects, among
others, may be forward-looking: the Company's ability to accurately
estimate information related to its operations and financial
condition as of June 26, 2020,
including its cash balances and debt to equity ratio. These
and other risks, uncertainties and factors, including those
described in the annual, quarterly and current reports that MFA
files with the SEC, could cause MFA's actual results to differ
materially from those projected in any forward-looking statements
it makes. All forward-looking statements are based on beliefs,
assumptions and expectations of MFA's future performance, taking
into account all information currently available. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which 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 MFA. Except as
required by law, MFA 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:
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InvestorRelations@mfafinancial.com
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NYSE:
MFA
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212-207-6488
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www.mfafinancial.com
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SOURCE MFA Financial, Inc.