Dow Jones News
Jun 16, 1:09 PM UTC
DJ MFA to Raise $500M, Enter $1.65B Credit Facility as Co. Swings to 1Q Loss
By Allison Prang
Real-estate investment trust MFA Financial Inc. said it is raising half a billion dollars and entering a credit facility for about $1.65 billion. It also reported a more than $900 million loss for the first quarter because of the Covid-19 pandemic.
The capital raise is from a loan agreement that private-equity firm Apollo Global Management and Athene Holding Ltd.'s subsidiaries will fund, MFA said. The approximately $1.65 billion borrowing facility is from Athene and also Barclays, MFA said.
MFA said it expects to be able to leave a forbearance agreement it entered into at the beginning of the month and also pay outstanding dividends as a result of the raise and credit facility.
For the first quarter, MFA swung to a loss of $909 million, or $2.02 a share, from a net income of $88.9 million, or 19 cents a share, in the prior-year period.
The company's results were impacted by a $150.8 million credit and valuation-loss provision, a $419.7 million impairment and a net realized loss on sales of residential mortgage securities and residential whole loans of $238.4 million. The company also recorded other net losses that hurt results.
Net interest income was $61.7 million, slightly lower than the $61.9 million in the year-ago period.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
June 16, 2020 09:09 ET (13:09 GMT)
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