Angel Oak Mortgage REIT, Inc. Completes $317 Million Standalone Securitization, Driving Margin Expansion and Setting the Stage for Continued Growth
Angel Oak Mortgage REIT (NYSE: AOMR) has completed a $317 million standalone securitization named AOMT 2024-10, backed by a pool of 661 non-QM residential mortgage loans. This move demonstrates the company's ability to quickly deploy capital into accretive investments, covering the cost of its July senior unsecured notes issuance within one quarter.
Key highlights of the securitization include:
- Weighted average loan coupon of 7.79%
- Weighted average original loan-to-value ratio of 70.3%
- Weighted average original FICO score of 754
- Senior tranche received AAA rating from Fitch Ratings
The deal lowers the weighted average funding cost for the underlying loans by over 110 basis points and reduces the company's whole loan warehouse debt by $260 million. AOMR plans to recycle the released capital into newly originated, high-quality non-QM loans to drive compounded balance sheet growth and net interest margin accretion.
Angel Oak Mortgage REIT (NYSE: AOMR) ha completato una senz'altro securitizzazione autonomo da 317 milioni di dollari denominata AOMT 2024-10, supportata da un pool di 661 prestiti ipotecari residenziali non-QM. Questa mossa dimostra la capacità dell'azienda di investire rapidamente capitale in investimenti redditizi, coprendo il costo dell'emissione di obbligazioni senior non garantite di luglio in meno di un trimestre.
Gli elementi chiave della securitizzazione includono:
- Tasso medio ponderato del prestito del 7,79%
- Rapporto medio ponderato iniziale dell'importo del prestito rispetto al valore dell'immobile del 70,3%
- Score FICO medio ponderato iniziale di 754
- Il tranche senior ha ricevuto un rating AAA da Fitch Ratings
L'operazione riduce il costo medio ponderato di finanziamento per i prestiti sottostanti di oltre 110 punti base e riduce il debito della società relativo ai prestiti interi di 260 milioni di dollari. AOMR prevede di riciclare il capitale liberato in nuovi prestiti di alta qualità non-QM per promuovere la crescita del bilancio e l'accrescimento del margine di interesse netto.
Angel Oak Mortgage REIT (NYSE: AOMR) ha completado una securitización independiente de 317 millones de dólares denominada AOMT 2024-10, respaldada por un conjunto de 661 préstamos hipotecarios residenciales no-QM. Este movimiento demuestra la capacidad de la empresa para desplegar rápidamente capital en inversiones rentables, cubriendo el costo de la emisión de notas senior no garantizadas de julio en menos de un trimestre.
Los aspectos clave de la securitización incluyen:
- Tasa de interés promedio ponderada del préstamo del 7.79%
- Relación promedio ponderada inicial del préstamo al valor de la propiedad del 70.3%
- Score FICO promedio ponderado inicial de 754
- La porción senior recibió una calificación AAA de Fitch Ratings
El acuerdo reduce el costo de financiamiento promedio ponderado para los préstamos subyacentes en más de 110 puntos base y reduce la deuda de la empresa relacionada con préstamos completos en 260 millones de dólares. AOMR planea reciclar el capital liberado en nuevos préstamos no-QM de alta calidad para impulsar el crecimiento compuesto del balance y la acumulación del margen de interés neto.
Angel Oak Mortgage REIT (NYSE: AOMR)는 661개의 비정형 주택 담보 대출 풀에 기반한 3억 1,700만 달러 규모의 독립적인 증권화인 AOMT 2024-10을 완료했습니다. 이번 조치는 회사가 신속하게 자본을 수익성 있는 투자에 배치할 수 있는 능력을 보여주며, 7월의 무담보 시니어 노트 발행 비용을 1분기 이내에 충당합니다.
증권화의 주요 하이라이트는 다음과 같습니다:
- 평균 가중 대출 쿠폰율 7.79%
- 평균 가중 초기 대출 대비 가치 비율 70.3%
- 평균 가중 초기 FICO 점수 754
- 시니어 트랜치는 Fitch Ratings로부터 AAA 등급을 받았습니다
이번 거래는 기초 대출에 대한 평균 자금 조달 비용을 110bp 이상 낮추고, 회사의 전체 대출 창고 부채를 2억 6천만 달러 줄였습니다. AOMR은 자본을 재활용하여 신규 비정형 고품질 대출에 투자하여 복합적으로 대차대조표 성장을 촉진하고 순이자 마진을 증가시킬 계획입니다.
Angel Oak Mortgage REIT (NYSE: AOMR) a complété une sécularisation autonome de 317 millions de dollars nommée AOMT 2024-10, soutenue par un portefeuille de 661 prêts hypothécaires résidentiels non-QM. Ce mouvement démontre la capacité de l'entreprise à déployer rapidement du capital dans des investissements rentables, couvrant le coût de l'émission de titres seniors non garantis de juillet en moins d'un trimestre.
Les points forts de la sécularisation comprennent :
- Taux d'intérêt moyen pondéré des prêts de 7,79%
- Ratio prêt-valeur initial moyen pondéré de 70,3%
- Score FICO moyen pondéré initial de 754
- La tranche senior a obtenu une note AAA de Fitch Ratings
L'opération réduit le coût moyen pondéré de financement des prêts sous-jacents de plus de 110 points de base et diminue la dette totale de l'entreprise sur les prêts de 260 millions de dollars. AOMR prévoit de recycler le capital libéré dans de nouveaux prêts non-QM de haute qualité pour stimuler la croissance de son bilan et l'augmentation de sa marge d'intérêt nette.
Angel Oak Mortgage REIT (NYSE: AOMR) hat eine eigenständige Verbriefung über 317 Millionen Dollar mit dem Namen AOMT 2024-10 abgeschlossen, die durch einen Pool von 661 nicht-qualifizierten Wohnungsbaukrediten gesichert ist. Dieser Schritt zeigt die Fähigkeit des Unternehmens, Kapital schnell in ertragreiche Investitionen zu lenken und die Kosten der Emission von ungesicherten Senior-Anleihen im Juli innerhalb eines Quartals zu decken.
Wichtige Highlights der Verbriefung sind:
- Gewichteter durchschnittlicher Kreditzins von 7,79%
- Gewichtetes durchschnittliches ursprüngliches Verhältnis von Darlehen zu Immobilienwert von 70,3%
- Gewichteter durchschnittlicher ursprünglicher FICO-Score von 754
- Die Senior-Tranche erhielt von Fitch Ratings ein AAA-Rating
Der Deal senkt die gewichteten durchschnittlichen Finanzierungskosten für die zugrunde liegenden Kredite um über 110 Basispunkte und reduziert die Schulden der Gesellschaft im gesamten Darlehenslager um 260 Millionen Dollar. AOMR plant, das freigesetzte Kapital in neu originierte, hochwertige nicht-qualifizierte Kredite zu reinvestieren, um ein kumulatives Wachstum der Bilanz und eine Erhöhung der Nettozinsspanne zu erzielen.
- Completed $317 million securitization, demonstrating quick capital deployment
- Lowered weighted average funding cost for underlying loans by over 110 basis points
- Reduced whole loan warehouse debt by $260 million
- Senior tranche received AAA rating from Fitch Ratings
- Set stage for compounded growth in Q4 and beyond
- None.
Insights
This securitization deal is a significant positive development for Angel Oak Mortgage REIT. The
- The deal covers the cost of the July senior notes issuance within one quarter, showcasing quick capital deployment.
- Weighted average loan coupon of
7.79% indicates strong yield on the underlying assets. - Reduction in funding costs by over
110 basis points will significantly improve net interest margins. $260 million reduction in whole loan warehouse debt improves the company's leverage profile.
This transaction sets the stage for compounded growth and margin expansion in Q4 and beyond. The high-quality loan portfolio (754 average FICO score) and AAA-rated senior tranche demonstrate strong underwriting standards. Overall, this deal strengthens AOMR's financial position and growth prospects in the non-QM loan market.
This securitization highlights the growing importance of non-QM loans in the mortgage market. Angel Oak's success in this space indicates a robust demand for alternative mortgage products outside traditional conforming loans. The deal's structure is noteworthy:
- 661 non-QM loans with an average LTV of
70.3% , balancing risk and opportunity. - AAA rating from Fitch for the senior tranche, signaling strong investor confidence.
- Retention of economics in unsold tranches allows AOMR to benefit from ongoing performance.
The ability to quickly recycle capital into new non-QM originations suggests a healthy pipeline and market demand. This transaction demonstrates the maturation of the non-QM securitization market, providing liquidity and enabling further growth in this sector. It's a positive indicator for both AOMR and the broader alternative mortgage market.
Company demonstrates quick, accretive deployment of capital, covering cost of July senior unsecured notes issuance within one quarter and establishing runway for continued growth.
“The execution of AOMT 2024-10 serves as a testament to the AOMR business model and our affiliated origination, purchase, and securitization platforms provided through the Angel Oak ecosystem. As we indicated in our second quarter earnings discussions, the loans contributed to this deal were largely purchased with the proceeds from our July senior unsecured notes issuance, demonstrating our ability to quickly deploy capital into accretive investments. With this deal, we have covered the cost of capital from the July senior notes offering and have set the stage for compounded growth in the fourth quarter and beyond,” said Sreeni Prabhu, Chief Executive Officer and President of Angel Oak Mortgage REIT, Inc. “We plan to quickly recycle the capital released from AOMT 2024-10 into newly originated, high-quality non-QM loans and drive compounded balance sheet growth, net interest margin accretion, and strong future securitization execution.”
Key Highlights and Updates
-
AOMT 2024-10 includes a portfolio of 661 non-QM loans with a scheduled principal balance of
$316.8 million 7.79% , a weighted average original loan-to-value ratio of70.3% , a weighted average original FICO score of 754. The A1 through B1 tranches, as well as a portion of the B2 tranche, were sold. The Company will retain the economics of the unsold tranches. - The deal lowers the weighted average funding cost for the loans underlying the securitization by over 110 basis points, which is incremental to the 50 basis points of warehouse funding cost relief from the Federal Reserve Bank’s September rate cut.
-
With this securitization, the Company reduces its whole loan warehouse debt by
$260 million
Forward Looking Statements
This press release contains certain forward-looking statements that are subject to various risks and uncertainties, including, without limitation, statements relating to the performance of the Company’s investments. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “believe,” “could,” “project,” “predict,” “continue,” or by the negative of these words and phrases or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe existing or future plans and strategies, contain projections of results of operations, liquidity and/or financial condition, or state other forward-looking information. The Company’s ability to predict future events or conditions, their impact or the actual effect of existing or future plans or strategies is inherently uncertain. Although the Company believes that such forward-looking statements are based on reasonable assumptions, actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements. You are cautioned not to place undue reliance on these forward‐looking statements, which reflect the Company’s views only as of the date of this press release. Additional information concerning factors that could cause actual results and performance to differ materially from these forward-looking statements is contained from time to time in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward‐looking statements. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
About Angel Oak Mortgage REIT, Inc.
Angel Oak Mortgage REIT, Inc. is a real estate finance company focused on acquiring and investing in first lien non-QM loans and other mortgage-related assets in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241016198133/en/
Investors:
investorrelations@angeloakreit.com
855-502-3920
IR Agency Contact:
Nick Teves or Joseph Caminiti
Alpha IR Group
AOMR@alpha-ir.com
312-445-2870
Company Contact:
KC Kelleher, Angel Oak Mortgage REIT, Inc.
Head of Corporate Finance & Investor Relations
404-528-2684
kc.kelleher@angeloakcapital.com
Source: Angel Oak Mortgage REIT, Inc.
FAQ
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