twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Defaults Force Luminent into Deal

Arco signs letter of intent to provide cash, acquire warrants

August 20, 2007

By staff

Luminent Mortgage Capital Inc. has struck a potential deal that could provide it with $60 million in cash. The move could significantly dilute shareholder equity but will help it manage outstanding repurchases and defaulted notes.

Arco Capital Corporation LTD has signed a letter of intent to arrange for the repurchase of around $65 million in Luminent's mortgage securities portfolios, San Francisco-based Luminent announced today. The deal gives Arco the option to buy up to 49 percent of Luminent's voting shares and up to 51 percent of Luminent's economic interest.

In return, Puerto Rico-based Arco will "provide Luminent with access to up to approximately $60 million in additional capital through repurchase agreements or secured credit arrangements with the intention of addressing current or impending margin calls and financing maturities," today's statement said. The transaction will also "allow for Luminent to further stabilize Luminent's repurchase agreement lines and maintain value in those positions through other transactions which potentially may include Arco acquiring selected assets from Luminent, on a case by case basis."

Additionally, four current directors will be replaced, the statement said.

The letter of intent reportedly calls for a business strategy where Luminent acts as a multi-channel manager for asset- backed securities.

A number of conditions, which Luminent was unable to assure would occur, need to be met prior to the closing of the deal, according to the announcement.

Luminent, a real estate investment trust, reported $30.9 million in outstanding notices of default for margin calls and $6.1 million in cash held to "effectuate refinancing" as of Friday, leaving it short about $24.8 million. In addition, it is also in default on $90.0 million of convertible senior notes due 2027 -- though the trustee has not yet called the notes due in full.

Luminent said the audit committee of its board of directors approved a decision to skip stockholder approval of the issuance of warrants because delays in today's climate could "seriously further jeopardize the financial viability of Luminent."

Earlier this month, Luminent warned about an increase in margin calls, noting the secondary market for mortgage loans and mortgage-backed securities had effectively seized-up.

In May, Greenwich Capital Financial Products Inc. provided a $1 billion whole loan warehouse financing facility to Luminent, including committed funds of $250 million. Luminent's Chief Executive Officer Trezevant Moore Jr. noted at the time, "Obtaining additional committed financing in this market environment further solidifies our strong liquidity position, and allows us to grow our profitable whole loan business."

In today's announcement, Moore explained, "Even with the possibility of sizeable dilution to existing Luminent stockholders, the transactions proposed by the letter of intent with Arco create the best path both to attempt to protect current value and grow potential value going forward."

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.

Mortgage REIT news | REIT Directory
Coverage of real estate investments trust companies, litigation and corporate activity.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders