Angel Oak Mortgage REIT, Inc. Reduces Funding Costs and Boosts Liquidity with Participation in $260.6 million Securitization
22 August 2023 - 10:05PM
Business Wire
Third securitization of the year pays down most
expensive warehouse facility, decreases financing costs, reduces
recourse leverage, and frees up capital
Angel Oak Mortgage REIT, Inc. (NYSE: AOMR), (the
“Company,” “we,” and “our”), a leading real estate finance company
focused on acquiring and investing in first-lien non-QM loans and
other mortgage-related assets in the U.S. mortgage market,
announces its participation in AOMT 2023-5, an approximately $260.6
million scheduled principal balance securitization backed by a pool
of residential mortgage loans. Similar to this year’s AOMT 2023-1
securitization, AOMR participated in AOMT 2023-5 alongside other
Angel Oak entities. The senior tranche received an AAA rating from
Fitch Ratings.
“AOMT 2023-5 builds upon the positive momentum of June’s AOMT
2023-4 securitization, the earnings impact of which had not yet
been demonstrated in our Q2 results. Between these two
securitizations, we have released over $45 million in capital for
new loan purchases and reduced over $260 million of debt on our
highest-cost loan financing facility, which will drive a meaningful
positive impact to earnings in the coming quarters,” said Sreeni
Prabhu, Chief Executive Officer and President of Angel Oak Mortgage
REIT, Inc. “Additionally, this transaction increases the weighted
average coupon rate of our remaining residential whole loans
portfolio, which should support future securitization
execution.”
Key Highlights and Updates
- The securitization and committed loan purchases will increase
the weighted average coupon rate of the Company’s residential whole
loans portfolio to 5.53%, up 69 basis points from 4.84% as of June
30, 2023. This is expected to continue to increase as
newly-originated loans are purchased with capital released from the
securitization.
- AOMR contributed loans with a scheduled unpaid principal
balance of $93.8 million, against which it carried $63.5 million of
debt on its highest-cost loan financing facility.
- The execution of AOMT 2023-5 brings AOMR’s total liquidity1 to
over $150 million.
- In total, AOMT 2023-5 consists of 530 loans. The securitization
has an average original credit score of 735, an original average
loan-to-value ratio of 71.9%, and a non-zero debt-to-income ratio
of 32.9%.
- AOMR will retain its pro-rata share of the unsold bonds in the
securitization.
1 Total liquidity consists of unrestricted cash and unencumbered
assets
Forward Looking Statements
This press release contains certain forward-looking statements
that are subject to various risks and uncertainties, including,
without limitation, statements relating to the performance of the
Company’s investments. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as “may,”
“will,” “should,” “potential,” “intend,” “expect,” “endeavor,”
“seek,” “anticipate,” “estimate,” “believe,” “could,” “project,”
“predict,” “continue,” or by the negative of these words and
phrases or other similar words or expressions. Forward-looking
statements are based on certain assumptions, discuss future
expectations, describe existing or future plans and strategies,
contain projections of results of operations, liquidity and/or
financial condition, or state other forward-looking information.
The Company’s ability to predict future events or conditions or
their impact or the actual effect of existing or future plans or
strategies is inherently uncertain. Although the Company believes
that such forward-looking statements are based on reasonable
assumptions, actual results and performance in the future could
differ materially from those set forth in or implied by such
forward-looking statements. You are cautioned not to place undue
reliance on these forward‐looking statements, which reflect the
Company’s views only as of the date of this press release.
Additional information concerning factors that could cause actual
results and performance to differ materially from these
forward-looking statements is contained from time to time in the
Company’s filings with the Securities and Exchange Commission.
Except as required by applicable law, neither the Company nor any
other person assumes responsibility for the accuracy and
completeness of the forward‐looking statements. The Company does
not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new
information, future events or otherwise.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is a real estate finance company
focused on acquiring and investing in first lien non-QM loans and
other mortgage-related assets in the U.S. mortgage market. The
Company’s objective is to generate attractive risk-adjusted returns
for its stockholders through cash distributions and capital
appreciation across interest rate and credit cycles. The Company is
externally managed and advised by an affiliate of Angel Oak Capital
Advisors, LLC, which, collectively with its affiliates, is a
leading alternative credit manager with a vertically integrated
mortgage origination platform. Angel Oak, Angel Oak Mortgage REIT,
AOMR and the tree design are trademarks owned or registered by
Angel Oak Companies, LP in the U.S.
Additional information about the Company is available at
www.angeloakreit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230822160111/en/
Investors: investorrelations@angeloakreit.com
855-502-3920 Company Contact: KC Kelleher, Head of Corporate
Finance & Investor Relations 404-528-2684
kc.kelleher@angeloakcapital.com Media: Bernardo Soriano,
Gregory FCA for Angel Oak Mortgage, Inc. 914-656-3880
bernardo@gregoryfca.com
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