HomeBanc Corp. Announces Completion of Almost $1 Billion Public Offering of Mortgage-Backed Notes
July 30 2004 - 3:10PM
PR Newswire (US)
HomeBanc Corp. Announces Completion of Almost $1 Billion Public
Offering of Mortgage-Backed Notes ATLANTA, July 30
/PRNewswire-FirstCall/ -- HomeBanc Corp. (NYSE:HMB) announced today
the completion of a public offering through HomeBanc Mortgage
Trust, Series 2004-1 (the "Trust") of approximately $989.2 million
of Notes backed by adjustable-rate, residential first mortgage
loans. The Notes sold to the public included approximately $880.8
million of Class A Notes in two classes rated AAA by Standard &
Poor's and Aaa by Moody's Investors Service and $84.3 million of
Class M Notes in four classes rated AA and Aa2 by S&P and
Moody's, respectively. HMB Acceptance Corp., a HomeBanc subsidiary,
acquired $24.1 million of Class B Notes in two classes rated
BBB/Baa2, together with the certificates representing the equity
interest in the Trust. The Trust includes $992.7 million of
adjustable-rate, residential first mortgage loans originated by
HomeBanc's subsidiary, HomeBanc Mortgage Corporation, which are
divided into two groups within the Trust. Approximately 89% of the
total portfolio consists of mortgage loans where the borrower pays
interest based on the six-month LIBOR rate plus a margin. The
initial floating interest rate on each class of Class A Notes is
one- month LIBOR plus 0.43% per annum. The initial floating
interest rates on the approximately $42.2 million aggregate
principal amount of Class M-1 Notes and on the approximately $42.1
million aggregate principal amount of Class M-2 Notes are one-month
LIBOR plus 0.60% and 1.15% per annum, respectively. The initial
floating interest rate on the Class B Notes is one-month LIBOR plus
1.50% per annum. HomeBanc will treat the Notes issued by HomeBanc
Mortgage Trust, Series 2004-1 and held by the public as debt for
financial accounting and federal income tax purposes. The Notes
were sold by Bear Stearns & Co. Inc. and J.P. Morgan Securities
Inc., as underwriters. Kevin D. Race, HomeBanc's President and
Chief Operating Officer, stated: "We are very pleased with the
terms of our first securitization since going public as a REIT on
July 19. This transaction implements our strategy of retaining high
quality, adjustable-rate loans match-funded by long-term
adjustable-rate securitized debt." Debra F. Watkins, HomeBanc's
Executive Vice President of Capital Markets added: "HomeBanc
Mortgage Trust, Series 2004-1 includes adjustable-rate mortgage
loans that we have originated and accumulated over a number of
months in anticipation of becoming a REIT and going public in an
IPO. This is a significant step in our strategic plan to originate
and hold prime quality loans bearing interest rates that are
adjusted periodically based upon LIBOR indices, and financing these
on a long-term basis with securitized debt with floating,
LIBOR-based interest rates. We expect to periodically engage in
similar securitized financings in the future, although the size of
individual future transactions likely will be smaller." HomeBanc
Corp. is the parent company of HomeBanc Mortgage Corporation, a
mortgage banking company that focuses on originating purchase money
residential mortgage loans in the southeast United States. HomeBanc
Corp. intends to make an election to be taxed as a "real estate
investment trust" or "REIT" for federal income tax purposes.
HomeBanc completed the initial public offering of its common stock
on July 19, 2004, when it sold 38.75 million shares for
approximately $289 million. Our common stock is listed on the New
York Stock Exchange under the symbol "HMB." This press release is
not an offer to sell or the solicitation of an offer to buy any
securities, and such offers are made only in jurisdictions where
permitted pursuant to the prospectus supplement and related
prospectus. This press release may include forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements are based on information presently
available to management and are subject to various risks and
uncertainties, including, without limitation, those described in
the Company's SEC reports and filings under "Special Cautionary
Notice Regarding Forward-Looking Statements" and "Risk Factors."
DATASOURCE: HomeBanc Corp. CONTACT: Kevin D. Race, President and
COO of HomeBanc Corp., +1-404-303-4000 Web site:
http://www.homebanc.com/
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