Western Asset Mortgage intends to terminate Terra Property merger (updated)

Western Asset Mortgage Capital

28/07/2023 03:16

(Adds details from statement in paragraph 3 and background)
       July 27 (Reuters) - Western Asset Mortgage Capital
Corporation  WMC.N  on Thursday said it notified Terra Property
Trust  TPTA.N  that it intends to terminate their merger
agreement unless the company receives a revised proposal by Aug.
3.
    In June, Terra Property Trust and Western Asset Mortgage
entered into a merger to form a real estate investment trust
(REIT) that is expected to have $1.2 billion in assets and $436
million of adjusted book value upon completion.
    The notification came after AG Mortgage Investment Trust
 MITT.N  earlier this month made a stock-and-cash offer to
Western Asset Mortgage, managed by Franklin Resources Inc
 BEN.N , valuing it at about $300 million including debt.
    On Tuesday, Terra Property Trust acquired a 5.2% Stake in AG
Mortgage Investment Trust, making it the second largest
stockholder.
    Terra Property Trust did not immediately respond to a
Reuters request for comment.
    Western Asset Mortgage invests in residential whole loans
and mortgage-backed securities, as does AG Mortgage Investment
Trust.     
    Angelo Gordon, a credit and real estate-focused investment
firm which manages AG Mortgage, agreed in May to sell itself to
private equity firm TPG Inc  TPG.O  for $2.7 billion. It
currently manages about $73 billion in assets.

 (Reporting by Urvi Dugar in Bengaluru; Editing by Nivedita
Bhattacharjee and Subhranshu Sahu)
 ((UrviManoj.Dugar@thomsonreuters.com;))