Western Asset Mortgage Capital Corporation Announces Pricing Of $919 Million Residential Whole Loan Securitization

PRNewswire 17-May-2019 7:00 AM

PASADENA, Calif., May 17, 2019 /PRNewswire/ -- Western Asset Mortgage Capital Corporation (NYSE:WMC) (the "Company") today announced that it has priced an aggregate $919 million of Mortgage-Backed Notes, Series 2019-2 (the "Notes") in a residential mortgage-backed securitization comprised of a portfolio of residential whole loans. The Notes, which initially will be issued by Arroyo Mortgage Trust 2019-2 in four classes, were priced with a weighted average fixed interest rate of 3.425% per annum. All of the Notes are anticipated to have a final payment date in April 2049. The Notes will be issued in a private placement to qualified institutional investors. It is expected that S&P and KBRA will rate the Notes at closing. The anticipated S&P and KBRA 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 May 21, 2019.

"This transaction represents the Company's first securitization and enables us to finance our target assets with longer-term fixed rate financing at attractive levels," said Jennifer Murphy, Chief Executive Officer of the Company. "Our successful execution of this securitization reflects the Company's ability to leverage the platform of our manager, Western Asset, which we view as a strategic advantage for the Company and its shareholders."

The Notes are not registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be or sold in the United States absent registration or an applicable exemption from the registration requirements. The Notes may only be and sold in the United States in accordance with Rule 144A under the Securities Act. This press release does not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful under the laws of such jurisdiction.

ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a real estate investment trust that invests in, acquires and manages a diverse portfolio of assets consisting of Agency CMBS, Agency RMBS, Non-Agency RMBS, Non-Agency CMBS, ABS, GSE Credit Risk Transfer Securities and Residential Whole, Bridge Loans and Commercial Loans. The Company's investment strategy may change, subject to the Company's stated investment guidelines, and is based on its manager Western Asset Management Company, LLC's perspective of which mix of portfolio assets it believes provide the Company with the best risk-reward opportunities at any given time. The Company is externally managed and advised by Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly-owned subsidiary of Legg Mason, Inc.

FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute "forward-looking statements." Operating results are subject to numerous conditions, many of which are beyond the control of the Company, including, without limitation, changes in interest rates; changes in the yield curve; changes in prepayment rates; the availability and terms of financing; general economic conditions; market conditions; conditions in the market for mortgage related investments; and legislative and regulatory changes that could adversely affect the business of the Company; and other factors, including those set forth in the Risk Factors section of the Company's annual report on Form 10-K for the period ended December 31, 2018 and quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2019 filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

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SOURCE Western Asset Mortgage Capital Corporation