Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
In recent weeks, due to the turmoil in the financial markets resulting from the
global pandemic of the COVID-19 virus,
In light of the events and conditions described above, the Company is engaged in discussions with its financing counterparties with regard to entering into forbearance agreements pursuant to which each counterparty would agree to forbear from exercising its rights and remedies with respect to an event of default under the applicable financing arrangement for an agreed-upon period. The Company cannot predict whether its financing counterparties will enter into a forbearance agreement, the timing of any such agreement, or the terms thereof.
Under the terms of the Company's financing arrangements, if the Company fails to deliver additional collateral or otherwise meet margin calls when due, the counterparties may demand immediate payment by the Company of its aggregate outstanding financing obligations and/or take ownership of the securities securing the Company's financing obligations.
The Company has engaged
Item 8.01. Other Events.
On
On
The quarterly cash dividend of
Unpaid dividends on the Company's Series B Preferred Stock shall accrue without interest. No dividends may be paid or set apart on shares of the Company's common stock unless full cumulative dividends on the Series B Preferred Stock for all past dividend periods that have ended have been or contemporaneously are paid in cash, or a sum sufficient for such payment is set apart for payment.
The Company will continue to monitor market conditions and the potential impact the ongoing volatility and uncertainty may have on its business. Related thereto, the Company's Board of Directors will continue to evaluate the payment of dividends as market conditions evolve. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit No. Description 99.1 Press Release, datedMarch 24, 2020 99.2 Press Release, datedMarch 25, 2020
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Forward-Looking Statements
When used in this report or other written or oral communications, statements
which are not historical in nature, including those containing words such as
"will," "believe," "expect," "anticipate," "estimate," "plan," "continue,"
"intend," "should," "could," "would," "may" or similar expressions, are intended
to identify "forward-looking statements" within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act, and, as such, may
involve known and unknown risks, uncertainties and assumptions. Statements
regarding the following subjects, among others, may be forward-looking: the
Company's estimates of its outstanding borrowings under its financing
arrangements, uncertainties related to negotiations with the Company's financing
counterparties including with respect to any forbearance agreement and the
timing of any such agreement or the terms thereof. Forward-looking statements
are based on estimates, projections, beliefs and assumptions of management of
the Company at the time of such statements and are not guarantees of future
performance. Forward-looking statements involve risks and uncertainties in
predicting future results and conditions. Actual results and outcomes could
differ materially from those projected in these forward-looking statements due
to a variety of factors, including, without limitation, the Company's ability to
accurately estimate its outstanding borrowings under its financing arrangements,
uncertainties related to negotiations with the Company's financing
counterparties including with respect to any forbearance agreement, the timing
of any such agreement or the terms thereof, changes in interest rates, changes
in default rates, changes in the yield curve, changes in prepayment rates, the
availability and terms of financing, changes in the market value of our assets,
general economic conditions, conditions in the market for our residential
mortgage backed securities, residential whole loans, residential mortgage
securities, MSR-related assets and other assets, the timing and amount of
distributions to our stockholders, our ability to maintain our exemption from
registration under the Investment Company Act of 1940, as amended, conditions in
the real estate market, legislative and regulatory changes that could adversely
affect the business of the Company and the ongoing spread and economic effects
of the novel coronavirus (COVID-19). Additional information concerning these and
other risk factors are contained in the Company's filings with the
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