MortgageIT Holdings, Inc. Announces Issuance of $50 Million of Trust Preferred Securities
March 27 2006 - 11:00AM
PR Newswire (US)
NEW YORK, March 27 /PRNewswire-FirstCall/ -- MortgageIT Holdings,
Inc. (NYSE:MHL), a residential mortgage company organized as a real
estate investment trust ("REIT"), today announced that MortgageIT,
Inc., its wholly owned residential mortgage banking subsidiary, has
issued and sold through a trust subsidiary in a private placement,
$50 million of trust preferred securities ("TPS"), to a
collateralized debt obligation pool vehicle, under Rule 144A of the
Securities Act of 1933, as amended ("Securities Act"), in a
transaction not otherwise registered thereunder. The floating rate
TPS bear a variable interest rate of 360 basis points above 3-month
LIBOR, paid quarterly, will mature in 2036 and are redeemable at
par after five years. Proceeds from the TPS sale will be used to
support the Company's strategic initiatives and the continued
expansion of MortgageIT, Inc.'s national mortgage origination
platform, and for general corporate purposes. The TPS have not been
and will not be registered under the Securities Act or applicable
state securities laws and, unless so registered, may not be offered
or sold in the United States, except pursuant to an applicable
exemption from the registration requirements of the Securities Act
and applicable state securities laws. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
the TPS. About MortgageIT Holdings, Inc. MortgageIT Holdings, Inc.
(NYSE:MHL) is a self-administered mortgage real estate investment
trust ("REIT") focused on the residential lending market. The
Company self-originates its investment portfolio of high quality
adjustable rate mortgage ("ARM") loans through MortgageIT, Inc.,
its wholly owned residential mortgage banking subsidiary.
MortgageIT, Inc. is a full- service residential mortgage banking
company that is licensed to originate loans throughout the United
States. MortgageIT Holdings is organized and conducts its
operations to qualify as a REIT for federal income tax purposes.
MortgageIT is organized and operates as MortgageIT Holdings'
taxable REIT subsidiary. For more information, please visit
http://www.mortgageitholdings.com/. Certain items in this press
release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that relate to future,
not past, events. In this context, forward-looking statements often
address the Company's expected future business and financial
performance, and often contain words such as "expects,"
"anticipates," "intends," "plans," "believes," "will" or other
similar words or expressions. Forward-looking statements, by their
nature, address matters that are, to different degrees, uncertain
and include, among other things, statements relating to the
Company's ability to fund a fully-leveraged, self-originated loan
portfolio, its anticipated loan funding volume and the Company's
ability to pay dividends. These statements are based on the current
economic environment and management's current expectations and
beliefs, and are subject to a number of trends and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements. Forward-looking
statements are inherently subject to significant economic,
competitive, and other contingencies that are beyond the control of
management. The Company can give no assurance that its expectations
will be attained. Factors that could cause actual results to differ
materially from the Company's expectations include, but are not
limited to, MortgageIT's continued ability to originate new loans,
including loans that the Company deems suitable for its
securitization portfolio; changes in the capital markets, including
changes in interest rates and/or credit spreads; and other risks
detailed in the Company's Annual Report on Form 10-K that was filed
with the Securities and Exchange Commission ("SEC") on March 15,
2006 and from time to time in the Company's other SEC reports. Such
forward-looking statements speak only as of the date of this press
release. The Company expressly disclaims any obligation to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in the Company's
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based. DATASOURCE:
MortgageIT Holdings, Inc. CONTACT: Investors: Sean McGrath of
MortgageIT Holdings, Inc., +1-646-346-8700; or Media: Joe LoBello
of Brainerd Communicators, Inc., +1-212-986-6667 Web site:
http://www.mortgageitholdings.com/
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