Angel Oak Mortgage REIT, Inc. Prices AOMT 2024-4, a $300 Million Standalone Securitization, Further Expanding Earnings and Releasing Capital for Additional Loan Purchases
Securitization releases nearly
“AOMT 2024-4, our first standalone securitization of the year, is expected to drive meaningful earnings growth and yield expansion in both the near- and long-term while further improving the positioning of our portfolio to perform in changing rate environments,” said
Key Highlights and Updates
-
AOMT 2024-4 includes a portfolio of 701 non-QM loans with a scheduled principal balance of
$299.8 million with a weighted average loan coupon of 7.4%, a weighted average original loan-to-value ratio of 69.8%, and a weighted average original FICO score 748. The A1 through M1 tranches were sold, with the Company retaining the economics of the unsold tranches. - The deal lowers the weighted average funding cost for the loans underlying the securitization by over 100 basis points compared to the warehouse funding cost prior to the securitization.
-
With this securitization, the Company will reduce its whole loan warehouse debt by
$236 million , reducing its total recourse debt to equity ratio in-kind. As new loans are purchased, recourse debt to equity will increase but is expected to remain below a recourse debt to equity ratio of 2.5x over the long-term. - With the capital released from the securitization, AOMR intends to accelerate purchases of current market coupon loans, leveraging the Angel Oak ecosystem and purchasing new loans primarily through its affiliated mortgage originator. Recently-locked loans have an 8.0% – 8.5% weighted average coupon.
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, 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
About
View source version on businesswire.com: https://www.businesswire.com/news/home/20240410364094/en/
Investors:
investorrelations@angeloakreit.com
855-502-3920
IR Agency Contact:
AOMR@alpha-ir.com
312-445-2870
Company Contact:
KC Kelleher,
404-528-2684
kc.kelleher@angeloakcapital.com
Source: