Mon, Mar. 7, 7:35 AM
- The price to be paid will be 87% of the book value per share calculated ten days prior to the expiration of the tender offer (April 1).
- As of March 4, the price to be paid is estimated to be $7.21 per share based on JMI's estimated BVPS of $8.28. JMI closed on Friday at $7.08.
- Previously: More mREIT M&A as Armour Residential scoops up Javelin (March 2)
Wed, Mar. 2, 7:20 AM
- The two struggling mortgage REITs share the same external manager, so the transaction isn't as exciting as it otherwise might be. Jeff Zimmer and Scott Ulm are co-CEOs and co-vice chairmen of both.
- Under the terms of the deal, Armour (NYSE:ARR) will tender to acquire all of Javelin (NYSE:JMI) for a cash amount equal to 87% of book value. Based on JMI's estimated book value as of March 1, the price would be $7.14 per share vs. last night's close of $6.
- The deal will bring Javelin's portfolio of non-agency MBS onto the Armour balance sheet (filled with agency MBS).
- Previously: Mortgage REITs mull Apollo sale (Feb. 26)