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NEW YORK, Dec. 28, 2012 (GLOBE NEWSWIRE) -- New York Mortgage Trust, Inc. (Nasdaq:NYMT) ("NYMT" or the "Company") announced today its entry, through a wholly-owned subsidiary, into a securitization transaction with a three-year term for the purpose of financing certain residential mortgage loans owned by the Company having an estimated aggregate market value of approximately $59.6 million (the "Mortgage Loans"). The Company received gross cash proceeds of approximately $38.7 million before deducting expenses associated with the transaction.
Pursuant to the terms of the securitization agreements, the Company transferred the Mortgage Loans to NYMT Residential, LLC (the "Depositor"), a wholly-owned subsidiary of NYMT, which in turn transferred the Mortgage Loans to NYMT Residential 2012-RP1, LLC (the "Issuer"), a special purpose entity, in exchange for the proceeds set forth above.
As part of the financing, the Issuer issued notes in an aggregate principal amount equal to the gross cash proceeds from the financing. The notes bear interest that is payable monthly at a per annum rate equal to 4.25% and are scheduled to mature in December 2015, at which time the Issuer will transfer the Mortgage Loans serving as collateral back to the Company. During the first two years of the financing (the "Revolving Period"), no principal payments will be made on the notes. All cash proceeds generated by the Mortgage Loans and received by the Issuer during the Revolving Period, after payment of interest on the notes, reserve amounts and certain other transaction expenses, will be available for the purchase by the Issuer of additional mortgage loans that satisfy certain eligibility criteria.
Steven R. Mumma, the Company's Chief Executive Officer and President, commented: "This structure allows for the reinvestment by us of loan proceeds from sales, refinancing's or other resolutions, subject to certain deductions, for a period of two years, thereby providing us with greater funding flexibility for future loan purchases. We believe funding structures similar to this transaction and our two multi-family CMBS securitizations completed in 2012 provide the Company with improved profitability while reducing credit and liquidity risks."