BALTIMORE, Sept. 19, 2019 /PRNewswire/ -- MMA Capital
Holdings, Inc. (Nasdaq: MMAC) ("MMA Capital" or "the
Company") today announced that its indirect wholly-owned
subsidiary, MMA Energy Holdings, LLC ("MEH"), entered into a
secured revolving credit facility ("Credit Agreement") with the
lenders party thereto (the "Lenders") and East West Bank ("EWB"), as administrative and
collateral agent ("Agent"). The Credit Agreement establishes
a $125 million revolving credit
facility of which $70 million has
been committed and $30 million has
been advanced as of the initial closing. The committed amount may
be increased up to the full amount of the facility after the
initial closing upon the joinder of additional lenders and may be
further expanded by up to an additional $50
million with the concurrence of the Lenders.
The Credit Agreement has a floating interest rate of LIBOR plus
2.75%, payable monthly in arrears and matures in 36 months, subject
to one twelve-month extension at the option of the Company.
The Credit Agreement is secured by the Company's equity interest in
MEH, as well as cash flows generated by MEH's investments in
certain renewable energy lending joint ventures and a general
guaranty provided by the Company. Proceeds drawn on the facility
can be used for existing and additional investments in debt
associated with renewable energy and reasonable operating expenses
of MEH.
Michael Falcone, MMA Capital's
Chief Executive Officer stated, "Today we entered into a new credit
facility that will help us increase the Company's investment in its
renewable energy lending platforms and in managing our cash
reserves. Although it may take some time to be reflected in
our results, with this facility, we expect to improve the Company's
return on investment in the renewable energy lending portfolio by
limiting the amount of idle cash and leveraging our portfolio
returns, as well as increasing our overall capital invested in the
portfolio. This agreement was a strategic goal of the Company for
2019 and we are pleased to achieve such attractive pricing for the
facility."
Additional information on the Credit Agreement can be found in
the Current Report on Form 8-K filed by the Company today.
Brean Capital, LLC ("Brean") served as the Company's Advisor and
Placement Agent for the Facility. Brean is a full service broker
dealer and investment bank, headquartered in New York, with offices throughout the United States, including Chicago, Boston and Memphis.
East West Bancorp is a publicly owned company with total assets
over $41.0 billion and is traded on
the Nasdaq Global Select Market under the symbol "EWBC". The
Company's wholly owned subsidiary, East West Bank, is one of the
largest independent banks headquartered in California.
Share Buyback Plan
In addition to approving the Credit Agreement, the board of
directors also approved a new share buyback plan ("Buyback Plan")
authorizing the Company to repurchase up to 100,000 shares of the
Company's common stock at market prices up to the Company's most
recently reported diluted common shareholders' equity per share,
which is currently $36.46, as
reflected in the Company's Quarterly Report on Form 10-Q for the
period ended June 30, 2019. The
Company may use a Rule 10b5-1 plan to implement the Buyback Plan,
subject to purchase volume limitations as defined by Rule
10b-18. The Buyback Plan will
include block trade purchases of up to 10,000 shares in any given
week and will expire at the earlier of the close of trading on
December 31, 2019 or the purchase of
100,000 shares of the Company's common stock. The timing and
actual number of shares acquired will depend on a variety of
factors, including price, general business and market conditions,
and investment opportunities.
The Buyback Plan does not obligate the Company to acquire any
particular number of shares of the Company's common stock, and the
Buyback Plan may be suspended or discontinued by the Company at any
time during an open trading window.
About MMAC Capital
MMA Capital invests in debt associated with renewable energy
infrastructure and real estate. MMA Capital is externally managed
and advised by Hunt Investment Management, LLC, an affiliate of
Hunt Companies, Inc. For additional information about MMA Capital
Holdings, Inc. (Nasdaq: MMAC), please visit MMA Capital's website
at www.mmacapitalholdings.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.
Cautionary Statement Regarding
Forward-Looking Statements
This Release contains forward-looking statements intended to
qualify for the safe harbor contained in Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include statements regarding the Credit Agreement and
other statements identified by words such as "may," "will,"
"should," "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," "seek," "would," "could," and similar words or
expressions and are made in connection with discussions of future
events and operating or financial performance.
Forward-looking statements reflect our management's
expectations at the date of this Release regarding future
conditions, events or results. They are not guarantees of future
performance. By their nature, forward-looking statements are
subject to risks and uncertainties. Our actual results and
financial condition may differ materially from what is anticipated
in the forward-looking statements. There are many factors that
could cause actual conditions, events or results to differ from
those anticipated by the forward-looking statements contained in
this Release. For a discussion of certain of those risks and
uncertainties and the factors that could cause our actual results
to differ materially because of those risks and uncertainties, see
Part I, Item 1A, Risk Factors of our Annual Report on Form 10-K for
the year ended December 31, 2018
("2018 Annual Report "), filed with the United States Securities
and Exchange Commission to which reference is hereby made. All
forward-looking statements made herein are expressly qualified in
their entirety by these cautionary statements and there can be no
assurance that the actual results, events or developments
referenced herein will occur or be realized. Readers are cautioned
not to place undue reliance on forward-looking statements in this
Release or that we may make from time to time. We expressly
disclaim any obligation to revise or update any forward-looking
statements in this Release, whether as a result of new information,
future events or otherwise.
www.mmacapitalholdings.com
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SOURCE MMA Capital Holdings, Inc.