AG Mortgage Investment Trust, Inc. Provides Update on Status of Financing Arrangements as of March 23, 2020
March 23 2020 - 06:30AM
Business Wire
AG Mortgage Investment Trust, Inc. (NYSE: MITT) (the “Company”)
announced today that in recent weeks, due to the turmoil in the
financial markets resulting from the global pandemic of the
COVID-19 virus, the Company and its subsidiaries have received an
unusually high number of margin calls from financing
counterparties. Through Friday March 20, 2020, the Company timely
met or is in the process of meeting all margin calls received.
Although the Company’s satisfaction of certain margin calls
received on Friday March 20, 2020 missed the wire deadline, on
Friday evening the Company notified the affected counterparties
that the Company will fulfill such margin call payments on Monday
March 23, 2020.
In addition, on Friday evening, March 20, 2020 the Company
notified its financing counterparties that it does not expect to be
in a position to fund the anticipated volume of future margin calls
under its financing arrangements in the near term as a result of
market disruptions created by the COVID-19 pandemic.
The Company further announced that it is engaged in discussions
with its financing counterparties with regard to entering into
forbearance agreements 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.
The Company has engaged Hunton Andrews Kurth LLP as legal
counsel and FTI LLC as financial advisor in connection with its
financings and related matters.
ABOUT AG MORTGAGE INVESTMENT TRUST, INC.
AG Mortgage Investment Trust, Inc. is a hybrid mortgage REIT
that opportunistically invests in and manages a diversified
risk-adjusted portfolio of Agency RMBS and Credit Investments,
which include Residential Investments and Commercial Investments.
AG Mortgage Investment Trust, Inc. is externally managed and
advised by AG REIT Management, LLC, a subsidiary of Angelo, Gordon
& Co., L.P., an SEC-registered investment adviser that
specializes in alternative investment activities.
FORWARD LOOKING STATEMENTS
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995 related to the
Company’s outstanding indebtedness and the status of our ongoing
discussions with our financing counterparties, among others.
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, changes in default
rates, changes in the yield curve, changes in prepayment rates, the
availability and terms of financing, changes in the market value of
our assets, general economic conditions, conditions in the market
for Agency RMBS, Non-Agency RMBS, ABS and CMBS securities, Excess
MSRs and loans, our ability to predict and control costs,
conditions in the real estate market, legislative and regulatory
changes that could adversely affect the business of the Company and
the ongoing spread and economic effects of the novel coronavirus
(COVID-19). Additional information concerning these and other risk
factors are contained in the Company’s filings with the SEC,
including its most recent Annual Report on Form 10-K and subsequent
filings. Copies are available free of charge on the SEC’s website,
http://www.sec.gov/. All information in this press release is as of
March 23, 2020. The Company undertakes no duty to update any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20200323005273/en/
AG Mortgage Investment Trust, Inc. Investor Relations
(212) 692-2110 ir@agmit.com
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