BALTIMORE--(BUSINESS WIRE)--Jun. 29, 2009-- Municipal Mortgage & Equity, LLC (OTC:MMAB) ("MuniMae" or "the Company,") today announced an agreement to sell substantially all of the low income housing tax credit (LIHTC) business operated by its subsidiaries MMA Equity Corporation and MMA Financial TC Corp.
MuniMae has agreed to sell the LIHTC assets of MMA Equity Corporation and MMA Financial TC Corp., other than its interests in certain guaranteed funds, to an affiliate of JEN Partners, LLC, a New York-based private equity real estate firm, for an aggregate consideration of approximately $30.7 million consisting of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by the purchaser. The sale is structured to occur in two separate closings. The first closing will cover at least thirty tax credit equity funds and the operating assets of the business, inclusive of employees, with a cash payment of at least $14 million plus the assumption of liabilities. The second closing will cover the remaining assets being transferred plus the balance of cash consideration. The sale is subject to certain purchase price adjustments as set forth in the purchase agreement. The Company will retain control of certain tax credit equity funds with respect to which the Company has guarantee obligations and will engage the purchaser to manage the funds.
MuniMae’s LIHTC business aggregates, syndicates and manages portfolios of low income housing tax credit and assisted multi-family properties and manages the properties, assets related to the operation of the properties as well as the investment vehicles through which such properties are owned and operated.
Michael L. Falcone, Chief Executive Officer stated, “This sale is consistent with our previously announced initiatives and supports our strategy to become a smaller, more focused enterprise. We have no present intent to sell any other business lines, but we may continue to sell certain assets.”
About MuniMae
MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate projects. Assets under management as of May 31, 2009 exceeded $10.8 billion including investments in over 1,800 multifamily apartment properties, containing about 206,000 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 tax features of a partnership. MuniMae also conducts activities through wholly owned taxable corporate subsidiaries.
This Release contains forward looking statements intended to qualify for the safe harbor contained in Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “seek,” “would,” “could,” and similar words or are made in connection with discussions of future operating or financial performance.
Forward-looking statements reflect our management’s expectations at the date of this Release regarding future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. Our actual results and financial condition may differ materially from what is anticipated in the forward-looking statements. There are many factors that could cause actual conditions, events or results to differ from those anticipated by the forward-looking statements contained in this Release. They include changes in market conditions that affect the willingness of potential investors or lenders to provide us with capital, changes in market conditions that affect the value or marketability of assets we own, changes in market conditions or other factors that affect our access to cash we need to meet our commitments to other persons, changes in interest rates or other conditions that affect the value of mortgage loans we have made, changes in interest rates, tax laws, environmental laws or other conditions that affect the value of the real estate underlying mortgage loans we own, changes in tax laws or other things beyond our control that affect the tax benefits available to investors in equity funds we have formed or manage. Readers are cautioned not to place undue reliance on forward-looking statements. We have not undertaken to update any forward-looking statements in this release.
MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
www.MuniMae.com
Source: Municipal Mortgage & Equity, LLC
Jessica C. Sanzone, Investor Relations Coordinator
888-788-3863
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