Recent Investment Announcement
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM AND THE REPUBLIC OF IRELAND), AUSTRALIA, CANADA, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO
16 January 2020
EJF Investments Ltd
Recent Investment Announcement
The Board of EJF Investments Ltd (together with its subsidiaries, "EJFI" or the "Company") is pleased to announce that the Company invested approximately £12.6 million1 in the preferred shares (the "Investment") issued by TruPS Financials Note Securitization 2019-2 ("TFINS 2019-2") on 15 January 2020.
The underlying collateral of TFINS 2019-2 mainly consists of trust preferred securities, surplus notes, and senior notes issued by 34 U.S. banks and 24 U.S. insurance companies and their holding companies with an aggregate par value of approximately US$338.4 million. The Investment represents the Company's eighth risk retention investment in a securitisation sponsored by EJF Capital LLC ("EJF") and represents the continuation of the Company's focus on equity tranches of collateralised debt obligations backed by US small and medium banks and insurance companies.
Approximately 89.7% of the collateral is indexed to three-month LIBOR, while the balance of the collateral is fixed rate. The weighted average spread of the floating assets is approximately 3.17%. The fixed-rate assets have a weighted average coupon of approximately 7.15%. The weighted average life of the collateral is approximately 10.6 years from the closing date, and TFINS 2019-2 has a final maturity date in 2039. The securitisation is callable after January 2023 at the option of the majority preferred shareholders, with mandatory auction calls commencing after November 2027. Anticipated return scenarios estimate that the Investment will generate a gross return in the high single digits over the estimated life of the Investment.
EJF CDO Manager LLC ("CDO Manager") will serve as the collateral manager for TFINS 2019-2 and will receive a 20-basis points p.a. fee in addition to earning an incentive management fee equal to 20% of profits over a 10% hurdle, subject to certain exceptions. The Company will also benefit from the economics generated by the CDO Manager through the Company's 49% ownership interest in the CDO Manager.
1 As converted using foreign exchange rates reported for the day the trade occurred.
For the Investment Manager
EJF Investments Manager LLC
Peter Stage / Hammad Khan / Matthew Gill
+44 203 752 6775 / +44 203 752 6771 / +44 203 752 6774
For the Company Secretary and Administrator
BNP Paribas Securities Services S.C.A
+44 1534 709 181 / +44 1534 813996
For the Broker
Numis Securities Limited
+44 20 7260 1301
About EJF Investments Ltd
EJFI is a registered closed-ended limited liability company incorporated in Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016 with registered number 122353. The Company is regulated by the Jersey Financial Services Commission (the "JFSC"). The JFSC is protected by both the Collective Investment Funds (Jersey) Law 1988 and the Financial Services (Jersey) Law 1998, as amended, against liability arising from the discharge of its functions under such laws.
The JFSC has not reviewed or approved this announcement.
Investor information & warnings
The latest available information on the Company can be accessed via its website at www.ejfi.com.
This communication has been issued by, and is the sole responsibility of, the Company and is for information purposes only. It is not, and is not intended to be an invitation, inducement, offer or solicitation to deal in the shares of the Company. The price and value of shares in the Company and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of shares in the Company. An investment in the Company should be considered only as part of a balanced portfolio of which it should not form a disproportionate part. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision.
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