EJF Investments Ltd Recent Investment Announcement (2707N)
September 23 2019 - 4:48AM
UK Regulatory
TIDMEJFI TIDMEJFZ
RNS Number : 2707N
EJF Investments Ltd
23 September 2019
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES,
ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE
UNITED KINGDOM AND THE REPUBLIC OF IRELAND), AUSTRALIA, CANADA,
SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO
SO
23 September 2019
EJF Investments Ltd
Recent Investment Announcement
The Board of EJF Investments Ltd (together with its
subsidiaries, "EJFI" or the "Company") is pleased to announce that
the Company invested approximately GBP10.3(1) million in the
preferred shares (the "Investment") issued by Financial Institution
Note Securitization 2019-1 Ltd ("FINS 2019-1") on 19 September
2019.
The underlying collateral of FINS 2019-1 mainly consists of bank
subordinated notes and senior unsecured notes issued by 45 US
community and regional banks and their holding companies, with an
aggregate par value of approximately US$250.5 million. The
Investment represents the Company's seventh risk retention
investment in a securitisation sponsored by EJF Capital LLC ("EJF")
and represents the continuation of the Company's focus on equity
tranches of collateralised debt obligations backed by US small and
medium banks.
Approximately 87% of the collateral accrues interest at a
weighted average fixed coupon of 6.3% for an initial period of five
years after which the interest rate floats at a weighted average
spread of 3.6% over U.S. 3-month LIBOR. The remaining 13% of the
collateral has a fixed interest rate with a weighted average coupon
of 6.5%. A majority of the collateral was issued in 2018 and 2019
and was structured with 10-year maturities and 5-year non-call
periods. The weighted average life of the collateral is
approximately 9.2 years from 19 September 2019, and FINS 2019-1 has
a final maturity date in 2034. The securitisation is callable after
July 2021 at the option of the majority preferred shareholders. As
part of this transaction, the Company contributed its GBP6.3
million US bank sub debt security to the securitisation.
Anticipated return scenarios estimate that the Investment will
generate a gross return in the high single digits over the
estimated life of the Investment.
EJF CDO Manager LLC ("CDO Manager") will serve as the collateral
manager for FINS 2019-1 and will receive a 30-basis points p.a. fee
in addition to earning an incentive management fee equal to 20% of
profits over a 10% hurdle, subject to certain exceptions. The
Company will also benefit from the economics generated by the CDO
Manager through the Company's 49% ownership interest in the CDO
Manager.
(1) As converted using foreign exchange rates reported for the
day the trade occurred.
ENQUIRIES
For the Investment Manager
EJF Investments Manager LLC
Peter Stage / Hammad Khan / Matthew Gill
pstage@ejfcap.com / hkhan@ejfcap.com / mgill@ejfcap.com
+44 203 752 6775 / +44 203 752 6771 / +44 203 752 6774
For the Company Secretary and Administrator
BNP Paribas Securities Services S.C.A
jersey.bp2s.ejf.cosec@bnpparibas.com
+44 1534 709 181 / +44 1481 750 822
For the Broker
Numis Securities Limited
David Luck
d.luck@numis.com
+44 20 7260 1301
About EJF Investments Ltd
EJFI is a registered closed-ended limited liability company
incorporated in Jersey under the Companies (Jersey) Law 1991, as
amended, on 20 October 2016 with registered number 122353. The
Company is regulated by the Jersey Financial Services Commission
(the "JFSC"). The JFSC is protected by both the Collective
Investment Funds (Jersey) Law 1988 and the Financial Services
(Jersey) Law 1998, as amended, against liability arising from the
discharge of its functions under such laws.
The JFSC has not reviewed or approved this announcement.
LEI: 549300XZYEQCLA1ZAT25
Investor information & warnings
The latest available information on the Company can be accessed
via its website at www.ejfi.com.
This communication has been issued by, and is the sole
responsibility of, the Company and is for information purposes
only. It is not, and is not intended to be an invitation,
inducement, offer or solicitation to deal in the shares of the
Company. The price and value of shares in the Company and the
income from them may go down as well as up and investors may not
get back the full amount invested on disposal of shares in the
Company. An investment in the Company should be considered only as
part of a balanced portfolio of which it should not form a
disproportionate part. Prospective investors are advised to seek
expert legal, financial, tax and other professional advice before
making any investment decision.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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