New York Mortgage Trust Provides Update on Status of Financing Arrangements as of March 23, 2020
March 23 2020 - 8:52PM
New York Mortgage Trust, Inc. (Nasdaq: NYMT) (the “Company”)
announced today that due to the turmoil in the financial markets
resulting from the global pandemic of the COVID-19 virus, the
Company and its subsidiaries (the “Company”) have received margin
calls from repurchase agreement financing counterparties over the
past week. Through Friday March 20, 2020, the Company timely met
all margin calls received. However, due to the continued
margin calls received for March 23, 2020, the Company has notified
its financing counterparties that it does not expect to fund the
existing and anticipated future margin calls under its financing
arrangements in the near term.
The Company is engaging in discussions with its
financing counterparties with regard to entering into a forbearance
agreement pursuant to which each counterparty would agree to
forbear from exercising its rights and remedies with respect to an
event of default under the applicable financing arrangement for an
agreed-upon period. The Company cannot predict whether its
financing counterparties will enter into a forbearance agreement,
the timing of any such agreement, or the terms thereof. As of March
23, 2020, none of the Company’s financing counterparties have
provided the Company with notice of an event of default.
Under the terms of the Company’s repurchase
agreement financing arrangements, if the Company fails to deliver
additional collateral or otherwise meet margin calls when due, the
counterparties may provide a notice of default and demand immediate
payment by the Company of its aggregate outstanding financing
obligations and/or take ownership of the securities securing the
Company’s repurchase agreement financing obligations.
Update on Common and Preferred Stock
Dividends
The Company also announced that its Board of
Directors (“Board”) has approved a suspension of the Company’s
quarterly dividends commencing with the first quarter dividends on
its common stock, 7.75% Series B Cumulative Redeemable Preferred
Stock, 7.875% Series C Cumulative Redeemable Preferred Stock,
8.000% Series D Fixed-to-Floating Rate Cumulative Redeemable
Preferred Stock and 7.875% Series E Fixed-to-Floating Rate
Cumulative Redeemable Preferred Stock that would have been paid in
April 2020. The Board’s decision reflects the Company’s focus on
conserving capital during these difficult conditions.
About New York Mortgage
TrustNew York Mortgage Trust, Inc. is a Maryland
corporation that has elected to be taxed as a real estate
investment trust for federal income tax purposes (“REIT”). NYMT is
an internally managed REIT in the business of acquiring, investing
in, financing and managing mortgage-related and residential
housing-related assets and targets structured multi-family property
investments such as multi-family CMBS and preferred equity in, and
mezzanine loans to, owners of multi-family properties, residential
mortgage loans (including distressed residential mortgage loans,
non-QM loans, second mortgage loans and other residential mortgage
loans), non-Agency RMBS, Agency RMBS, Agency CMBS and other
mortgage-related, residential housing-related and credit-related
assets.
Cautionary Note 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,”
“could,” “would,” “should,” “may”, “expect” or similar expressions,
are intended to identify “forward-looking statements” within the
meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act, 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 meet its obligations under the Company’s outstanding
indebtedness and the status of the Company’s ongoing discussions
with its financing counterparties. 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 and the market value of the
Company’s assets; changes in credit spreads; changes in the
long-term credit ratings of the U.S., Fannie Mae, Freddie Mac, and
Ginnie Mae; market volatility; changes in prepayment rates on the
loans the Company owns or that underlie the Company’s investment
securities; increased rates of default and/or decreased recovery
rates on the Company's assets; the Company's ability to identify
and acquire its targeted assets, including assets in its investment
pipeline; the Company’s ability to borrow to finance its assets and
the terms thereof; changes in governmental laws, regulations or
policies affecting the Company’s business; the Company’s ability to
maintain its qualification as a REIT for federal tax purposes; the
Company’s ability to maintain its exemption from registration under
the Investment Company Act of 1940, as amended; risks associated
with investing in real estate assets, including changes in business
conditions and the general economy, and conditions in the market
for Agency RMBS, non-Agency RMBS, ABS and CMBS securities,
residential mortgage loans, structured multi-family investments and
other mortgage-, residential housing- and credit-related assets,
including changes resulting from the ongoing spread and economic
effects of the novel coronavirus (COVID-19). These and other risks,
uncertainties and factors, including the risk factors described in
the Company’s reports filed with the SEC pursuant to the Exchange
Act, 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.
For Further Information
AT THE COMPANYKristine R.
Nario-Eng Chief Financial
Officer
Phone: 646-216-2363Email: knario@nymtrust.com
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