America First Multifamily Investors, L.P. Elects to Extend the Maturity of its Series M-031 TEBS Financing
August 05 2019 - 3:05PM
America First Multifamily Investors, L.P. (the “Partnership”) would
like to announce an extension to the maturity of its Series M-031
Tax-Exempt Bond Securitization (“TEBS”) program (“TEBS Financing”)
with the Federal Home Loan Mortgage Corporation (“Freddie Mac”) to
July 2024.
The TEBS Financing represents the securitization
of twelve of the Partnership’s mortgage revenue bonds (the
“Bonds”). Under the terms of the TEBS Financing, the Partnership
transferred the Bonds to ATAX TEBS II, LLC, a special purpose
entity controlled by the Partnership (the “Sponsor”). The
Sponsor then securitized the assets by transferring the Bonds to
Freddie Mac in exchange for tax-exempt Class A and Class B Freddie
Mac Multifamily Certificates for each respective series
(collectively the “TEBS Certificates”) issued by Freddie Mac.
The TEBS Certificates represent beneficial interests in the
securitized assets held by Freddie Mac.
The TEBS Financing had an initial maturity date
of July 2019. Prior to or on this date, the Sponsor had the option
to either redeem the Class A TEBS Certificates or continue the TEBS
Financings through July 2024. In June 2019, the Sponsor notified
Freddie Mac that it elected to extend the maturity of the TEBS
Financing through July 2024. Upon receipt of this election,
Freddie Mac had the option to change its liquidity fee rate.
Freddie declined to do so and the TEBS Financing continues to incur
interest at a variable rate, based on the weekly Securities
Industry and Financial Market Association (“SIFMA”) floating index
rate. In addition, the Sponsor continues to pay certain credit
enhancement, remarketing and servicing fees (collectively,
“Facility Fees”) at the same rates as before the maturity
extension. As of the extension notification date, the amount of the
M-031 Class A TEBS Certificates was approximately $80.2 million and
the M-031 Class B TEBS Certificates, with a total value of
approximately $23.7 million, were retained by the Sponsor.
Subsequent to the Sponsors notice of its
extension to Freddie Mac, the parties entered into a First
Amendment to Bond Exchange, Reimbursement, Pledge and Security
Agreement dated July 1, 2019. This amendment made technical updates
to the original Bond Exchange, Reimbursement, Pledge and Security
Agreement dated July 1, 2014.
“The extension of the M-031 TEBS Financing
represents a continuation of our asset-based financing program with
Freddie Mac for the benefit of our Unitholders,” said Chad Daffer,
Chief Executive Officer of the Partnership.
About America First Multifamily Investors,
L.P.
America First Multifamily Investors, L.P. was
formed on April 2, 1998 under the Delaware Revised Uniform Limited
Partnership Act for the primary purpose of acquiring, holding,
selling and otherwise dealing with a portfolio of mortgage revenue
bonds which have been issued to provide construction and/or
permanent financing for affordable multifamily, student housing and
commercial properties. The Partnership is pursuing a business
strategy of acquiring additional mortgage revenue bonds and other
investments on a leveraged basis. The Partnership
expects and believes the interest earned on these mortgage revenue
bonds is excludable from gross income for federal income tax
purposes. The Partnership seeks to achieve its
investment growth strategy by investing in additional mortgage
revenue.
Safe Harbor Statement
Information contained in this press release
contains “forward-looking statements,” which are based on current
expectations, forecasts and assumptions that involve risks and
uncertainties that could cause actual outcomes and results to
differ materially. These risks and uncertainties include, but are
not limited to, risks involving current maturities of our financing
arrangements and our ability to renew or refinance such maturities,
fluctuations in short-term interest rates, collateral valuations,
bond investment valuations and overall economic and credit market
conditions. For a further list and description of such risks, see
the reports and other filings made by the Partnership with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2018. The
Partnership disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
CONTACT:
Craig AllenChief Financial
Officer(800) 283-2357
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