Recent Investment Announcement

RNS Number : 4273N

EJF Investments Ltd

09 May 2018

 

FOR IMMEDIATE RELEASE

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM), AUSTRALIA, CANADA, SOUTH AFRICA, JAPAN OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO.

9 May 2018

EJF Investments Ltd

Recent Investment Announcement

The Board of EJF Investments Ltd (together with its subsidiaries, "EJFI" or the "Company") is pleased to announce that the Company invested approximately £16.8 million[i] in the preferred shares (the "Investment") issued by TruPS Financials Note Securitization 2018-1 Ltd ("TFINS 2018-1") on 8 May 2018.

TFINS 2018-1 is a securitization primarily consisting of trust preferred securities issued by 62 U.S. community banks and 4 U.S. insurance companies (collectively, the "Underlying Securities") with an aggregate par value of approximately $538 million. TFINS 2018-1 is a securitization sponsored by EJF Capital LLC.

Approximately 93 per cent of the Underlying Securities are floating-rate with a weighted average spread of the floating assets of approximately 2.7 per cent p.a. over U.S. Dollar 3-month LIBOR. The remaining Underlying Securities are fixed-rate with a weighted average coupon of approximately 6.2 per cent p.a.

The weighted average maturity of the Underlying Securities is approximately 16 years from the closing date and TFINS 2018-1 has a final maturity date in 2039.  The securitization is callable after March 2020 at the option of the majority preferred shareholders, with mandatory auction calls commencing after March 2026.  Anticipated return scenarios estimate that the Investment will generate a gross return in the low double digits over the estimated life of the Investment.

The Company will also participate in the collateral management fee income via its 49 per cent ownership interest in EJF CDO Manager LLC (the "CDO Manager"), which serves as the collateral manager for TFINS 2018-1, and will earn a 20 basis points p.a. fee in addition to an incentive management fee equal to 20 per cent of profits over a 10 per cent hurdle.

i As converted using foreign exchange rates reported for the day the trade occurred.

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ENQUIRIES

For the Investment Manager

EJF Investments Manager LLC

Peter Stage / Hammad Khan / Matt Gill

[e-mail] / [e-mail] / [e-mail]

[phone] / [phone] / [phone]

For the Company Secretary and Administrator

Crestbridge Fund Administrators Limited

[e-mail]

[phone]

For the Broker

Henry Freeman / Gillian Martin

[phone]

About EJF Investments Ltd

EJFI is a registered closed-ended limited liability company incorporated in Jersey under the Companies (Jersey) Law 1991, as amended, on 20 October 2016 with registered number 122353. The Company is regulated by the Jersey Financial Services Commission (the "JFSC"). The JFSC is protected by both the Collective Investment Funds (Jersey) Law 1988 and the Financial Services (Jersey) Law 1998, as amended, against liability arising from the discharge of its functions under such laws.

LEI:  549300XZYEQCLA1ZAT25

Investor information & warnings

The latest available information on the Company can be accessed via its website at www.ejfi.com. 

This communication has been issued by, and is the sole responsibility of, the Company and is for information purposes only. It is not, and is not intended to be an invitation, inducement, offer or solicitation to deal in the shares of the Company. The price and value of shares in the Company and the income from them may go down as well as up and investors may not get back the full amount invested on disposal of shares in the Company. An investment in the Company should be considered only as part of a balanced portfolio of which it should not form a disproportionate part. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision.

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