Western Asset Mortgage Capital Corporation Announces Pricing for $351.9 Million Residential Loan Securitization
PASADENA, Calif.–(BUSINESS WIRE)–Western Asset Mortgage Capital Corporation (NYSE: WMC) (the “Company”) announced today that it has priced an aggregate of $351.9 million of mortgage-backed notes, series 2022-2 (the “Notes”) in connection with a residential mortgage-backed securitization consisting of a portfolio of entire residential loans. The notes, which will initially be issued by Arroyo Mortgage Trust 2022-2 in four classes, were priced with a weighted average fixed interest rate of approximately 5.9% per annum. All Bonds are expected to have a final payment date of July 2057. The Bonds will be issued in a private placement to qualified institutional investors and non-US persons under Regulation S of the Securities Act. It is expected that S&P and DBRS will value the Notes at Closing. The expected S&P and DBRS ratings for the Class A-1 Notes are AAA(sf) and AAA(sf), respectively. The offering is subject to customary closing conditions and is expected to close on or about July 13, 2022.
“As the company continues its transition to residential real estate related investments, we are pleased to announce the pricing of our fourth residential whole loan asset securitization. This transaction allows us to fund these assets at attractive longer-term fixed rates,” said Bonnie Wongtrakool, the company’s chief executive.
The Notes are not registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes may only be offered and sold in the United States pursuant to Rule 144A of the Securities Act. This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of this jurisdiction.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a real estate investment trust that invests, acquires and manages a diversified portfolio of assets, with an emphasis on investments related to residential real estate, including non-qualified mortgages, non- -agency and other related investments. The Company’s investment strategy is subject to change, subject to the investment guidelines set forth by the Company, and is based on its manager Western Asset Management Company, LLC’s view of the mix of assets in the portfolio which, according to it offers the Company the best risk-return opportunities at any given time. . The company is externally managed and advised by Western Asset Management Company, LLC, a Securities and Exchange Commission registered investment adviser and a wholly owned subsidiary of Franklin Resources, Inc. Please visit the company’s website at address www.westernassetmcc.com.
This press release contains statements that constitute “forward-looking statements”. For these statements, the Company claims the protections of the safe harbor for forward-looking statements contained in these sections. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and generally beyond the Company’s control. In particular, it is difficult to fully assess the impact of COVID-19 at present due to, among other factors, the uncertainty regarding the severity and duration of the epidemic nationally and internationally and the the effectiveness of federal, state, and local government efforts to contain the spread of COVID-19 and respond to its direct and indirect impact on the United States economy and economic activity.
Results of operations are subject to numerous conditions, many of which are beyond the Company’s control, including, without limitation, changes in interest rates; evolution of the yield curve; changes in prepayment rates; the availability and terms of financing; general economic conditions; market conditions; market conditions for mortgage-related investments; and legislative and regulatory changes that could adversely affect the Company’s business.
Other factors are described in the Risk Factors section of the Company’s Annual Report on Form 10-K for the period ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”). The Company assumes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.