BALTIMORE,
Oct. 5, 2018 /PRNewswire/ -- MMA
Capital Management, LLC (NASDAQ: MMAC) ("MMA Capital" or "the
Company") today announced that an affiliate of Hunt Companies, Inc.
("Hunt") has exercised Hunt's option as set forth in the Master
Transaction Agreement dated January 8,
2018 between the Company and Hunt ("MTA") to take
assignment of the Company's commitment to acquire the LIHTC
business of Morrison Grove Management, LLC ("MGM") pursuant
to the Purchase and Sale Agreement dated as of the 8th day of
January, 2018 (the "MGM PSA"). As a result of the
Company's assignment of the MGM PSA and Hunt's closing thereunder,
the Company will recognize an increase in common shareholders'
equity of approximately $14.2 million
in the fourth quarter, or approximately $2.32 per share based on our diluted shares
outstanding at June 30,
2018.
Michael Falcone, MMA
Capital 's Chief Executive Officer stated, "As
discussed in our filing for the second quarter, Hunt has now
elected to exercise its option to take assignment of the MGM
agreements and, subject to the terms of such agreements, has
consummated the acquisition of the MGM LIHTC business. With
this closing, we have recognized an estimated $14.2 million increase in additional GAAP common
shareholders' equity and our 2018 full year financial statements
will reflect the entirety of the gain from the January Hunt
transaction. With this final element of the transaction
completed we can transition our focus on the future investment
opportunities available to the Company."
The assignment of the MGM PSA and Hunt's closing
thereunder completes the Company's disposition of its LIHTC
business. In connection with the closing, the Company
completed a series of additional transactions completing the
disposition of MGM related assets. Those additional
transactions included the acquisition by Hunt from the Company of a
$9.0 million senior loan for
$9.4 million, a loan that we had
previously acquired from an affiliate of MGM. In addition,
the Company acquired $10.0 million in
Hunt notes from the MGM principals, for $5.0
million in cash and $5.0
million in a Company note. This purchase has the
effect of increasing the principal balance of the Company's
existing note from Hunt from $57.0
million to $67.0
million. The Company note to the MGM
principals is payable quarterly in arrears, bears an interest rate
of 5.0% and has a varying amortization schedule that fully
amortizes the note by its maturity date of January 1, 2026.
About MMAC
MMA Capital primarily invests in debt associated with real
estate and infrastructure. MMA Capital is externally managed and
advised by Hunt Investment Management, LLC, an affiliate of Hunt
Companies, Inc. For additional information about MMA Capital
Management, LLC (NASDAQ: MMAC), please visit MMA Capital's website
at www.mmacapitalmanagement.com. For additional
information about Hunt Investment Management, LLC, please see its
Form ADV and brochure (Part 2A of Form ADV) available at
https://www.adviserinfo.sec.gov.
MMA CAPITAL MANAGEMENT: INTEGRITY.
INNOVATION. SERVICE.
www.mmacapitalmanagement.com
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SOURCE MMA Capital Management, LLC