Angel Oak Mortgage REIT issued a $284.5 million non-QM securitization, marking what the company marks an “inflection point” in its business.
The company said it intends to use the capital to purchase more newly originated, high-coupon debt while continuing to manage liquidity. The securitization will reduce Angel Oak’s overall debt warehouse debt by 45.6% through the first quarter of 2023, bringing the total reduction of the REIT’s overall debt warehouse debt to approximately 73.7% by the end of the third quarter of 2022.
“We believe this securitization represents a turning point in our business, as the approximately $30 million of capital to be issued through AOMT 2023-4 will allow us to materially expand that loan acquisition activity.” which we launched earlier this quarter,” said Srini Prabhu. Angel Oak Mortgage REIT CEO and President said in a statement Wednesday.
The securitization consisted of a portfolio of 606 non-QM loans with a fixed principal balance of $284.5 million. The loans have a weighted average loan coupon of 4.5%, a weighted average principal loan-to-value ratio of 71.3% and a weighted average principal FICO score of 734.
Prior to the securitization transaction, AOMR began actively purchasing newly originated loans with a weighted average loan coupon of 8.2%, a weighted average principal loan-to-value ratio of 72% and a weighted average principal FICO score of 749, said the company.
The senior tranche received an AAA rating from Fitch Ratings.
