Municipal Mortgage (NYSE:MMA)
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MuniMae (NYSE:MMA) announced today that it has closed on
the previously announced purchase of Glaser Financial Group, Inc.
("Glaser"). Assuming certain performance metrics are achieved, the
acquisition price will be approximately $67 million payable in a
combination of cash and stock.
The initial cash purchase price is being financed in large part
with long-term financing that was put in place earlier this week. On
June 28, 2005, MMA Financial Holdings, Inc., a subsidiary of MuniMae,
sold approximately $39 million of 30-year trust preferred securities,
through a subsidiary trust at a fixed rate of 7.62%(1).
Glaser arranges financing predominantly in the upper Midwest for
multifamily, senior housing and commercial real estate through Fannie
Mae DUS(TM), Freddie Mac, HUD/FHA, conventional and conduit funding
sources. Glaser's current $3.5 billion servicing portfolio is
comprised of approximately 64,000 units and includes both insured and
uninsured taxable loans and tax-exempt bond issues.
MuniMae President and CEO Michael Falcone stated, "This
acquisition adds significant scale to our existing mortgage banking
business and strengthens our relationship with two of our most
important capital partners, Fannie Mae and Freddie Mac." He added, "We
are pleased to announce that we have financed a significant portion of
the Glaser acquisition with long-term, fixed rate financing at a very
attractive price."
Glaser will operate as part of MMA Financial, LLC, one of the
operating subsidiaries of MuniMae, and will continue under the
leadership of David Williams, Glaser's current Chief Executive
Officer. Mr. Williams will report directly to Gary Mentesana,
Executive Vice President and Head of the Debt Group for MuniMae.
Gary Mentesana stated, "We are extremely fortunate to have
acquired such a great business and look to immediately integrate
Glaser into our existing mortgage banking platform." He added,
"Glaser's Midwest focus is an excellent complement to our
geographically diverse national servicing portfolio and, after the
acquisition, assets under management for the entire company will
exceed $15 billion."
-0-
*T
(1) The trust preferred securities are fixed at 7.62% for 10
years, at which point they will convert to a floating rate at a
spread to LIBOR thereafter.
*T
About MuniMae
MuniMae and its subsidiaries provide debt and equity financing to
developers of multifamily housing and other real estate investments.
As of March 31, 2005, assets under management totaled $11.9 billion
secured by 2,376 properties containing 249,276 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 income features
of a partnership. As a result, the tax-exempt income derived from
certain investments remains tax-exempt when passed through to
shareholders. Distributions to shareholders are normally declared
quarterly and paid in February, May, August and November.
This press release contains statements that are forward looking in
nature and reflect management's current views with respect to future
events and financial performance. These statements are subject to many
uncertainties and risks and should not be considered guarantees of
future performance. This press release does not constitute an offer to
sell any securities of Municipal Mortgage & Equity, LLC or any other
entity.
This press release contains statements that are forward looking in
nature and reflect management's current views with respect to future
events and financial performance. These statements are subject to many
uncertainties and risks and should not be considered guarantees of
future performance. Actual results may vary materially from projected
results based on a number of factors, including the actual performance
of the properties pledged as collateral for the portfolio, general
conditions in the local real estate markets in which the properties
are located and prevailing interest rates. This press release does not
constitute an offer to sell any securities of Municipal Mortgage &
Equity, LLC or any of its affiliates.
MUNIMAE: INTEGRITY. INNOVATION. SERVICE.
www.munimae.com