Article 1.01. The conclusion of an important definitive agreement.
August 6, 2021, Angel Oak Mortgage, Inc.(the "Company") and one of its subsidiaries entered into Amendment No. 7 ("Amendment No. 7") to the Master Repurchase Agreement (the "Nomura Loan Financing Line") with Nomura Corporate Funding Americas, LLC("Nomura"). Pursuant to Amendment No. 7 and a related side letter, the Company, its subsidiary and Nomura agreed: (1) to extend the termination date of the Nomura Loan Financing Line from December 3, 2021to August 5, 2022(the "Initial Termination Date"); (2) to permit the Company and its subsidiary to request three months prior to the Initial Termination Date to extend the Nomura Loan Financing Line by up to 364 additional days, subject to certain conditions being satisfied; (3) to adjust the pricing rate for certain mortgage loans whereby upon the Company's or its subsidiary's repurchase of a mortgage loan, the Company or its subsidiary is required to repay Nomura the adjusted principal amount related to such mortgage loan plus accrued and unpaid interest equal to the sum of (A) the greater of (i) the applicable LIBOR floor and (ii) one-month LIBOR or three-month LIBOR (depending on the type of mortgage loan) and (B) a spread generally ranging from 1.70% to 3.50% depending on the type of loan; (4) that the aggregate repurchase price for (A) all eligible "prime jumbo mortgage loans" and "agency mortgage loans" (together, "Agency/Prime Jumbo Mortgage Loans") cannot exceed $125.0 millionand (B) all non-QM mortgage loans cannot exceed $225.0 million; and (5) Agency/Prime Jumbo Mortgage Loans will not be subject to mark-to-market provisions but instead, with respect to Agency/Prime Jumbo Mortgage Loans with a loan to value ratio greater than 70% (" High LTV Agency/Prime Jumbo Loans"), a margin call is triggered if the difference between (A) the ratio of (i) the sum of all repurchase prices of High LTV Agency/Prime Jumbo Loans to (ii) the market value of all High LTV Agency/Prime Jumbo Loans less (B) the ratio of (i) the sum of all purchase prices of High LTV Agency/Prime Jumbo Loans to (ii) the market value of all High LTV Agency/Prime Jumbo Loans exceeds 4%. A copy of Amendment No. 7 is attached hereto as Exhibit 10.1 and incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description Exhibit 10.1 Amendment No. 7 to the Master Repurchase Agreement by and
Exhibit 104 Interactive cover page data file (integrated into the online XBRL document).
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