{"id":1004670151,"date":"2023-06-29T03:08:16","date_gmt":"2023-06-29T11:08:16","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004670151"},"modified":"2023-06-29T05:27:12","modified_gmt":"2023-06-29T13:27:12","slug":"terra-property-trust-western-asset-mortgage-join-forces","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/","title":{"rendered":"Terra Property Trust, Western Asset Mortgage Join Forces"},"content":{"rendered":"
\"\"<\/a>

The combined company will be headquartered in New York City. Image via Pixabay.com<\/i><\/p><\/div>\n

Terra Property Trust Inc<\/strong>. and Western Asset Mortgage Capital Corp<\/strong>. have entered into a definitive merger agreement<\/a> under which they will combine to form a REIT that\u2019s expected to have about $1.2 billion in assets and $436 million of adjusted book value on completion of the merger, before deducting transaction expenses, the companies announced on Wednesday, June 28.<\/p>\n

Both are externally managed REITs. TPT originates, invests in and manages loans and assets secured by commercial real estate, and WMC invests in, finances and manages a portfolio of real estate\u2013related securities, whole loans and other financial assets.<\/p>\n

As consideration, TPT stockholders will receive newly designated shares of WMC Class B common stock. The number of shares will be based on the two companies\u2019 adjusted book value per share.<\/p>\n

The new WMC shares will be identical to existing Class A common shares, except that they will not be NYSE-listed and will convert into an equal number of WMC Class A common shares over 18 months after the completion of the merger.<\/p>\n

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READ ALSO<\/strong>: Bridge Investment, Townsend Launch Logistics JV<\/a><\/p>\n

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WMC stockholders will retain their existing shares, which will be reclassified as Class A common stock on the closing of the merger and will continue to be NYSE-listed under a new name. The new name has not yet been finalized, a WMC spokesperson told Commercial Property Executive<\/em>.<\/p>\n

On the merger\u2019s closing, TPT stockholders are expected to own approximately 76 percent of the combined company’s outstanding common stock, while WMC stockholders are expected to own approximately 24 percent.<\/p>\n

In a prepared statement, WMC CEO Bonnie Wongtrakool noted that \u201ca valuation of WMC\u2019s equity based on its adjusted book value per share \u2026 is significantly greater than WMC’s market capitalization based on recent trading levels.\u201d<\/p>\n

The merged company reportedly is expected to have a diversified investment portfolio focused on shorter-tenor, floating-rate, low-LTV commercial real estate loans, as well as \u201csignificant leverage reduction and reduced operating expenses (as a percentage of combined capital base).\u201d<\/p>\n

The nuts and bolts<\/h2>\n

On completion of the merger, TPT’s CEO, Vik Uppal, will serve as chairman & CEO of the combined company, which will be headquartered in New York City. Wongtrakool will not be an officer of the company, the spokesperson told Commercial Property Executive<\/em>.<\/p>\n

The combined company\u2019s board is expected to have eight directors: six designated by TPT and two designated by WMC. The combined company will be externally managed by a subsidiary of Mavik Capital Management <\/strong>LP.<\/p>\n

The merger has already been unanimously approved by each of the companies\u2019 boards. It\u2019s expected to close during the fourth quarter of 2023, subject to stockholder approvals and other customary closing conditions.<\/p>\n

Raymond James<\/strong> is exclusive financial advisor and Alston & Bird<\/strong> LLP is legal advisor to TPT. JMP Securities<\/strong>, a Citizens Company, is exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom<\/strong> LLP is legal advisor to WMC.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mavik Capital Management will externally manage the credit-focused REIT.<\/p>\n","protected":false},"author":882,"featured_media":1004496436,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,23891,1600,21742,10],"tags":[38666],"class_list":["post-1004670151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-national","category-new-york","category-latest","category-northeast","tag-alston-bird"],"acf":[],"yoast_head":"\nTerra Property Trust, Western Asset Mortgage Join Forces - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Terra Property Trust Inc. and Western Asset Mortgage Capital Corp. have entered into a definitive merger agreement.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Terra Property Trust, Western Asset Mortgage Join Forces\" \/>\n<meta property=\"og:description\" content=\"Terra Property Trust Inc. and Western Asset Mortgage Capital Corp. have entered into a definitive merger agreement.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-29T11:08:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-29T13:27:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/new-york-skyline-pixabay.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"931\" \/>\n\t<meta property=\"og:image:height\" content=\"721\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/\",\"name\":\"Terra Property Trust, Western Asset Mortgage Join Forces - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/new-york-skyline-pixabay.jpg\",\"datePublished\":\"2023-06-29T11:08:16+00:00\",\"dateModified\":\"2023-06-29T13:27:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Terra Property Trust Inc. and Western Asset Mortgage Capital Corp. have entered into a definitive merger agreement.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/terra-property-trust-western-asset-mortgage-join-forces\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/new-york-skyline-pixabay.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2020\/12\/new-york-skyline-pixabay.jpg\",\"width\":931,\"height\":721,\"caption\":\"Manhattan skyline. 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