New York Mortgage Trust Enters Into Definitive Agreement to Sell Its Wholesale Lending Assets to Tribeca Lending Corp.
February 15 2007 - 4:05PM
PR Newswire (US)
NEW YORK, Feb. 15 /PRNewswire-FirstCall/ -- New York Mortgage
Trust, Inc. (NYSE: NTR, "NYMT" or the "Company") today announced
that, as a part of its previously announced exploration of
strategic alternatives, it has entered into a definitive agreement
to sell substantially all of the assets of the wholesale lending
origination business located in Bridgewater, New Jersey of its
wholly owned taxable REIT subsidiary, The New York Mortgage
Company, LLC ("NYMC"), to Tribeca Lending Corp., a wholly owned
subsidiary of Franklin Credit Management Corporation (NASDAQ:FCMC)
for a purchase price consisting of 50 basis points of the principal
amount of the Pipeline Loans closed within 90 days after the
closing of the transaction, the book value of fixed assets or
"furniture, fixtures and equipment," totaling approximately
$485,000 and a pipeline mortgage adjustment marking all locked
pipeline loans to market. As part of the transaction, Tribeca
Lending will acquire substantially all of the operating assets,
including the existing pipeline of locked and unlocked mortgage
applications ("Pipeline Loans"), assume certain lease liabilities
related to NYMC's Bridgewater, New Jersey wholesale lending office
and the Pipeline Loans, and make employment offers to approximately
60 NYMC wholesale lending employees. The transaction is subject to
customary closing requirements and is expected to close by the end
of February 2007. As previously announced, the Company's Board of
Directors has been engaged over the past several months in
discussions with several companies, a number of which expressed
interest in acquiring some or all of NYMT. On February 7, 2007 NYMT
announced an asset sale of the Company's retail lending businesses
to IndyMac Bank, F.S.B. and the continued strategic option review
for NYMT. Milestone Advisors, LLC acted as financial advisor and
Tarter Krinsky & Drogin LLP served as legal counsel to New York
Mortgage Trust on this transaction. About New York Mortgage Trust
New York Mortgage Trust, Inc., a real estate investment trust
(REIT), is engaged in the origination of and investment in
residential mortgage loans throughout the United States. The
Company, through its wholly owned taxable REIT subsidiary, The New
York Mortgage Company, LLC ("NYMC"), originates a broad spectrum of
residential loan products with a focus on high credit quality, or
prime, loans. In addition to prime loans, NYMC also originates
jumbo loans, alternative-A loans, sub-prime loans and home equity
or second mortgage loans through its retail and wholesale
origination branch network. The Company's REIT portfolio is
comprised not subject to federal income tax provided that it
distributes at least 90% of its REIT taxable income to its
stockholders. For more information about New York Mortgage Trust
please visit http://www.nymtrust.com/. Safe Harbor Regarding
Forward-Looking Statements Certain statements contained in this
press release, including statements relating to the proposed
transaction with Tribeca Lending Corporation and NYMT's strategic
options, may be deemed to be forward-looking statements that
predict or describe future events or trends. The matters described
in these forward- looking statements are subject to known and
unknown risks, uncertainties and other unpredictable factors, many
of which are beyond the Company's control. The Company faces many
risks that could cause its actual performance to differ materially
from the results predicted by its forward-looking statements,
including, without limitation, that the Company may fail to satisfy
all of the closing conditions pursuant to the Asset Purchase
Agreement, the possibilities that a rise in interest rates may
cause a decline in the market value of the Company's assets, a
decrease in the demand for mortgage loans may have a negative
effect on the Company's volume of closed loan originations,
prepayment rates may change, borrowings to finance the purchase of
assets may not be available on favorable terms, the Company may not
be able to maintain its qualification as a REIT for federal tax
purposes, the Company may experience the risks associated with
investing in real estate, including changes in business conditions
and the general economy, and the Company's hedging strategies may
not be effective. The reports that the Company files with the
Securities and Exchange Commission contain a fuller description of
these and many other risks to which the Company is subject. Because
of those risks, the Company's actual results, performance or
achievements may differ materially from the results, performance or
achievements contemplated by its forward-looking statements. The
information set forth in this news release represents management's
current expectations and intentions. The Company assumes no
responsibility to issue updates to the forward-looking matters
discussed in this press release. DATASOURCE: New York Mortgage
Trust, Inc. CONTACT: Steven R. Mumma, Chief Financial Officer of
New York Mortgage Trust, Inc., +1-212-634-2411, ; or General: Joe
Calabrese, +1-212-827-3772, or Analysts: Julie Tu, +1-212-827-3776,
both of Financial Relations Board, for New York Mortgage Trust,
Inc. Web site: http://www.nymtrust.com/
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