New York Mortgage Trust has priced a total of $60 million in 9.125% senior, unsecured notes due to mature on July 1, 2029 with the aim of using the funds in part to fund
The real estate investment trust also may use the funds raised for general corporate purposes. Underwriters have the option to purchase up to $9 million more notes for 30 days with closing expected to occur Friday.
Joint book-running managers for the offering are Morgan Stanley, RBC Capital Markets, UBS, Wells Fargo, Piper Sandler, and Keefe, Bruyette & Woods.
Cash payments will be every three months on the first day of January, April, July, and October starting this fall. The company, a mortgage investor with property management and servicing expertise, can engage in partial or full redemptions after July 1, 2026.
Single-family credit and agency assets have constituted 70% of NYMT's capital allocation, at 53% and 17%, respectively. One-fourth of the remaining allocation has been devoted to multifamily, with a 5% share going to cash and other assets.
The company acquired $306 million in residential loans in the first quarter and $298 million in residential agency securitizations collateralized by business purpose, bridge or rental loans.
It also issued a $276 million rated securitization of performing and reperforming residential mortgages in the quarter and a $225 million revolving transaction backed by business purpose loans.
NYMT's stock was trading at a little above $6 per share at the time of this writing Wednesday morning and was down slightly on the day. The company recorded a $57.9 million loss and $29.9 million revenue during the first quarter, according to
Other nonbanks engaging in debt market activity this month have included mortgage REIT Redwood Trust and Loandepot, a lender and servicer.
Redwood in mid-June
Loandepot, in line with a nondepository lending trend toward lengthening debt maturities in a low origination environment,
Large nonbanks first became more notably active in the unsecured debt market in the third quarter of last year, when Fitch noted in a report that
"Unsecured debt is more stable and isn't subject to margin calls if we have a significant interest rate rally, for example. So it has some benefits on that side," Dan Perotti, Pennymac's chief financial officer, noted in the company's fourth-quarter 2023 earnings call.
"We think it can drive down the costs over time as we move toward unsecured debt that has a more favorable sort of ratings and capital profile stability," he added.
Pennymac's upsized $750 debt offering of notes due 2029 in December of last year had a 7.875% note rate. Last month, it conducted a private offering of $650 million in 7.125% notes due 2030 to pay down debt from other sources like revolving mortgage-servicing rights facilities.
