NEW YORK, March 25, 2020 /PRNewswire/ -- Exantas Capital
Corp. (NYSE:XAN) (the "Company") announced today that, 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 margin calls from CMBS repo financing counterparties. As
of the close of business on March 23,
2020, the Company did not meet all of its margin calls. The
Company has requested that its CMBS repo financing counterparties
forbear from exercising rights under the applicable agreements to
allow the Company to evaluate its options for responding to the
current situation.
On March 24, 2020, the Company
received written notices from certain affiliates of Royal Bank of
Canada ("RBC") alleging that
events of default had occurred with respect to various financing
agreements. The Company disputes RBC's notices of events of
default and intends to vigorously assert its rights and defenses
against any wrongful conduct by its CMBS repo financing
counterparties. The Company estimates that, as of
March 24, 2020, the Company's
aggregate obligations subject to the foregoing notices of default
are approximately $225 million.
In light of the events and conditions described above, the
Company is pursuing discussions with its CMBS repo financing
counterparties with regard to entering into forbearance agreements
pursuant to which each counterparty would agree to forbear from
exercising its rights and remedies under the applicable financing
arrangement for an agreed-upon period. The Company cannot predict
whether any of its CMBS repo financing counterparties will enter
into a forbearance agreement, the timing of any such agreement, or
the terms thereof. The Company continues to consider its strategic
options for responding to margin calls and the unprecedented
volatility in the markets.
Under the terms of the applicable financing arrangements, if the
Company fails to deliver additional collateral or otherwise meet
margin calls when due, the CMBS repo counterparties may demand
immediate payment by the Company of the aggregate outstanding
financing obligations owed to such counterparties, and if such
financing obligations are not paid, may sell the securities and
apply the proceeds to the Company's financing obligations and/or
take ownership of the securities securing the Company's financing
obligations.
The Board of Directors of the Company has rescinded the
Company's previously announced cash dividend of $0.275 per common share for shareholders of
record on March 31, 2020 and the cash
dividend in the amount of $0.539063
per share on its 8.625% Fixed-to-Floating Series C Cumulative
Redeemable Preferred Stock for shareholders of record on
April 30, 2020 due to the events
described above and the uncertainties in the market resulting from
the COVID-19 pandemic.
About Exantas Capital Corp.
Exantas Capital Corp. is a real estate investment trust that is
primarily focused on originating, holding and managing commercial
real estate mortgage loans and other commercial real estate-related
debt investments. The Company is externally managed by Exantas
Capital Manager Inc., which is an indirect wholly-owned subsidiary
of C-III Capital Partners LLC, a leading commercial real
estate investment management and services company engaged in a
broad range of activities. For more information, please visit the
Company's website at www.exantas.com or contact
investor relations at IR@exantas.com.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements can generally be
identified by our use of forward-looking terminology such as "may,"
"trend," "will," "continue," "expect," "intend," "anticipate,"
"estimate," "believe," "look forward" or other similar words or
terms. Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from the
expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements.
Factors that can affect future results are discussed in the
documents filed by the Company from time to time with
the Securities and Exchange Commission. The Company undertakes
no obligation to update or revise any forward-looking statement to
reflect new or changing information or events after the date hereof
or to reflect the occurrence of unanticipated events, except as may
be required by law.
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SOURCE Exantas Capital Corp.