Transaction Creates New Partnership with Major Financial Institution
BALTIMORE--(BUSINESS WIRE)--MMA Financial, LLC (“MMA Financial”), an operating subsidiary of Municipal Mortgage & Equity, LLC ( MuniMae or the Company, NYSE: MMA) announced today that it has completed the refinancing of a $25 million private placement, multi-family housing mortgage revenue bond, with a major U.S. financial institution as the credit enhancement and liquidity provider. MMA Financial expects that the transaction will reduce its current financing costs for the asset by approximately 200 basis points per year.
“MMA Financial is pleased to have closed on the refinancing of this bond, and more importantly, solidified our existing relationship with an important capital partner by creating a new bond financing program,” said Gary Mentesana, head of MMA Financial and Executive Vice President of MuniMae. “This transaction demonstrates our ability to access competitively priced bond financing despite the recent turmoil in the capital markets.”
About MuniMae
MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate and clean energy projects. The Company also provides investment management and advisory services for institutional investors. Assets under management exceed $19 billion including investments in approximately 3,000 multifamily properties, containing more than 323,000 units in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
MuniMae is organized as a limited liability company, which allows it to combine the limited liability, governance and management characteristics of a corporation with the pass-through features of a partnership. As a result, the tax-exempt income derived from certain investments remains tax-exempt when passed through to shareholders. MuniMae also conducts activities through wholly owned taxable corporate subsidiaries. Distributions to shareholders are normally declared quarterly.
Statements in this press release or on MuniMae's website that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward looking statements include such matters as future Board actions concerning our dividend. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained. The Company undertakes no obligation to revise or update publicly any forward-looking statements contained herein for any reason. Factors that could cause actual results to differ materially from the Company's expectations include completion of the audit of our financial statements, completion of pending investments, continued ability to originate new investments, the mix of business between tax-exempt and taxable activities, the availability and cost of capital for future investments, competition within the finance and real estate industries, economic conditions, loss experience and other risks detailed from time to time in the Company's SEC reports. This press release does not constitute an offer to sell any securities of the Company or any other entity.
MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
Media Contact(s):
Jennifer M. Bowser
MuniMae
813-868-8008
jennifer.bowser@munimae.com
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