New York Mortgage Trust, Inc. Announces Consent Solicitation Related to Senior Notes due 2026 to Support Strategic Growth
Certain details regarding the Notes and the Consent Solicitation are set forth in the table below.
Title of Notes | CUSIP / ISIN Numbers | Aggregate Principal Amount Outstanding ( | Consent Payment per | ||
5.75% Senior Notes due 2026 | 649604 AG0 / US649604AG06 649604 AE5 / US649604AE57 |
The Company is soliciting consents (“Consents”) from the holders of the Notes for a proposed amendment to the Indenture to revise the first sentence of Section 1013 of the Indenture to provide that the Company will not permit the Net Debt to Equity Ratio (as defined in the Indenture) as of the last day of each fiscal quarter of the Company to be greater than 8.00 to 1.00 (the “Proposed Amendment”).
The Proposed Amendment is intended to support the continued execution of the Company’s investment strategy, which is focused on generating recurring income. Since the second quarter of 2023, the Company has significantly increased investment activity, targeting assets that are less sensitive to credit deterioration, such as Agency RMBS, and investments with shorter duration and higher yields, such as business purpose loans. This strategy resulted in the acquisition of approximately
These investments delivered strong financial results in the first quarter of 2025, including a 55% year-over-year increase in interest income. To support this expansion in investment activity, the Company utilized efficient, low-cost leverage, particularly in Agency RMBS, increasing its recourse leverage ratio to 3.4x as of
As of
The Proposed Amendment to the Indenture will enhance the Company’s financial flexibility to continue scaling its portfolio in line with current market opportunities and its income generation objectives. The Company believes that increasing the maximum Net Debt to Equity Ratio is consistent with prudent financial management and is in the best interests of its stakeholders.
Adoption of the Proposed Amendment requires Consents from the holders of a majority of the outstanding aggregate principal amount of the Notes (the “Requisite Consents”). In the event that the Company receives the Requisite Consents on or prior to the Expiration Date, among other conditions, the Company will pay an aggregate cash payment equal to
The Consent Solicitation is subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the Consent Solicitation Statement, including the receipt of the Requisite Consents. The Company intends to fund the Consent Solicitation, including fees and expenses payable in connection with the Consent Solicitation, with cash on hand.
Holders may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Consent Solicitation.
None of the Company, the Solicitation Agent, the Information and Tabulation Agent, the trustee under the Indenture or any of their respective affiliates is making any recommendation as to whether holders should deliver Consents in response to the Consent Solicitation. Holders must make their own decision as to whether to participate in the Consent Solicitation, and, if so, the principal amount of Notes in respect of which to deliver Consents.
This news release shall not constitute an offer to sell, a solicitation to buy or an offer to purchase or sell any securities. The Consent Solicitation is being made only pursuant to the Consent Solicitation Statement and only in such jurisdictions as is permitted under applicable law. In any jurisdiction in which the Consent Solicitation is required to be made by a licensed broker or dealer, the Consent Solicitation will be deemed to be made on behalf of the Company by the Solicitation Agent, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements involve numerous risks and uncertainties. The Company’s actual results may differ from the Company’s beliefs, expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements are not historical in nature and can be identified by words such as “anticipate,” “estimate,” “will,” “should,” “expect,” “believe,” “intend,” “seek,” “plan” and similar expressions or their negative forms, or by references to strategy, plans, or intentions. Forward-looking statements are based on the Company’s beliefs, assumptions and expectations of the Company’s future performance, taking into account information currently available to the Company. Statements regarding the Consent Solicitation, the timing thereof, and the Company’s intention to fund the Consent Solicitation, are forward-looking statements. No assurance can be given that the Consent Solicitation discussed above will be completed on the terms described or at all or that the Company will be able to realize the anticipated benefits of the Consent Solicitation. Completion of the Consent Solicitation on the terms described is subject to numerous possible events, factors and conditions, many of which are beyond the control of the Company and not all of which are known to the Company. These forward-looking statements are subject to risks and uncertainties, including, without limitation, market conditions and those described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
For Further Information
AT THE COMPANY
Investor Relations
Phone: 212-792-0107
Email: [email protected]
