Mfa Financial Forbearance Agreement

Cash and cash update. As of April 24, 2020, the Company had a cash credit totalling $430.9 million, including $143.8 million in cash in consideration of retirement transactions with counterparties, to satisfy marginal calls. As noted above, cash will be reduced by $150 million to pension counterparties to reduce ongoing repurchase commitments. Under the Second Forbearance Agreement, participating counterparties retain a guaranteed interest in the Company`s assets to date without charges, primarily residential real estate loans, real estate, cash and other assets with an estimated market value of approximately $1.4 billion (as of April 24, 2020). MFA Financial had previously announced that it had suspended cash dividends for each of its common shares and 7.50% of the series B cumulative preferred shares due to financial market turbulence due to the coronavirus pandemic and liquidity preservation. In light of the above and the provisions contained in the third leniency agreement, which limits distributions to the company`s shareholders, MFA Financial has also decided to suspend the cash dividends of preferential share B and its Series C at 6.50%, fixed-to-variable, on shareholder-related preferred shares. The third agreement extends the leniency period agreed under the company`s leniency agreement reached on 27 April 2020 and which expires from 16.30 .m AND 1 June. According to a press release, the terms of the third agreement are almost identical to those of the second agreement. Under the third agreement, the counterparties to AMF Financial`s unpaid repurchase agreements have agreed to refrain from exercising rights or remedial measures in their respective pension transactions with the company, including the sale of security to enforce marginal appeals, until June 26, unless they are terminated earlier after certain events occur. Due to the uncertainty created by the appearance of coronavirus on financial markets, AMF Financial has not been able to respond to the « unusually high number » of marginal calls.

During the period covered by the third leniency agreement, the Company intends to review other potential transactions in order to further reduce its obligations arising from its existing pension operations, financing from generally more sustainable sources than existing financing alternatives and raising funds to strengthen its liquidity. In addition, the Company will continue to engage with its counterparties in order to obtain more leniency if necessary. View original In addition, MFA Financial sold supporting documents and generated US$3.5 billion in revenue, used to reduce associated pension liabilities.