PASADENA, Calif., June 23, 2020 /PRNewswire/ -- Western Asset
Mortgage Capital Corporation (the "Company") (NYSE: WMC) announced
today that the Company will not pay a common stock dividend in the
second quarter.
As the Company continues to manage the impact of the COVID-19
pandemic on its investment portfolio and operations, the Company
and its Board of Directors concluded it is in the best interests of
its shareholders to continue to preserve liquidity and increase
shareholders equity by retaining earnings in the second quarter.
The Company will continue to monitor market conditions, including
the financing market for its assets, and the potential impact that
changing market conditions may have on its business. The Company's
Board of Directors will evaluate the payment of dividends in light
of evolving market conditions and the Company's liquidity position,
taxable income, and leverage. Additionally, the Company is
monitoring its taxable income to ensure that the Company meets the
minimum distribution requirements to maintain its status as a REIT
for the annual period ending December 31, 2020.
The Company estimates that its book value per share, as of
May 31, 2020, was approximately
$3.26. The May
31, 2020 estimated book value is unaudited, has not been
verified or reviewed by any third party and is subject to normal
quarterly reconciliation and other procedures. Book value will
fluctuate with market conditions, the results of the Company's
operations and other factors. The Company's current book value may
be materially different from the May 31,
2020 estimated book value.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a real estate
investment trust that invests in, acquires and manages a diverse
portfolio of assets consisting of Residential Whole Loans,
Commercial Whole Loans, Non-Agency CMBS, GSE Risk Transfer
Securities and to a lesser extent Agency CMBS, Agency RMBS,
Non-Agency RMBS and ABS. The Company's investment strategy may
change, subject to the Company's stated investment guidelines, and
is based on its manager Western Asset Management Company, LLC's
perspective of which mix of portfolio assets it believes provide
the Company with the best risk-reward opportunities at any given
time. The Company is externally managed and advised by Western
Asset Management Company, LLC, an investment advisor registered
with the SEC and a wholly-owned subsidiary of Legg
Mason, Inc.
On February 18, 2020, Franklin
Resources, Inc. ("Franklin") and Legg
Mason announced that they had entered into an agreement
under which Franklin would acquire Legg
Mason and its affiliates, including Western Asset Management
Company, LLC. The transaction is expected to close in
the third quarter of 2020 and is subject to customary closing
conditions. Upon completion of the transaction Western Asset
Management Company, LLC would become a wholly owned subsidiary of
Franklin.
Please visit the Company's website at
www.westernassetmcc.com.
FORWARD-LOOKING STATEMENTS
Certain items in this press release may constitute
forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements relating to the proposed
offering and the anticipated use of the net proceeds from the
offering. These statements are based on management's current
expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The Company
can give no assurance that its expectations will be attained.
Factors that may cause actual results to vary from our
forward-looking statements include, but are not limited to, changes
in interest rates; changes in the yield curve; changes in
prepayment rates; the availability and terms of financing; general
economic conditions; market conditions; conditions in the market
for mortgage related investments; legislative and regulatory
changes that could adversely affect the business of the Company;
and other factors, including those set forth in the Risk Factors
section of the Company's annual report on Form 10-K for the period
ended December 31, 2019 and quarterly
report on Form 10-Q for the fiscal quarters ended March 31, 2020, respectively, filed with the SEC.
The Company undertakes no obligation to update these statements for
revisions or changes after the date of this release, except as
required by law.
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SOURCE Western Asset Mortgage Capital Corporation