America First Multifamily Investors terminated all of its outstanding debt financing arrangements with Deutsche Bank. America First Multifamily Investors repaid outstanding principal totaling approximately $51.8 million, which previously had fixed interest rates ranging from 4.01% to 4.53%. In addition, America First Multifamily Investors terminated its master trust agreement with Deutsche Bank and is no longer subject to its financial and non-financial covenant provisions.
Concurrent with the termination of the debt financing arrangements with Deutsche Bank, America First Multifamily Investors entered into five variable rate tender option bond (TOB) trust financings with Mizuho Capital Markets, with initial principal balances totaling approximately $55.4 million. The new TOB trusts have variable interest rates that were set at 2.08% for their initial period at closing. The new TOB trust financings were entered into under America First Multifamily Investors’ current master trust agreement with Mizuho.
“I am extremely pleased to announce the closing of the TOB trust financings with Mizuho,” Chad L. Daffer, CEO of America First Multifamily Investors, said. “The closing of these new financing structures given current market uncertainty due to the COVID-19 pandemic is a strong indicator of ATAX’s ability to access capital markets. The relief from covenants under the Deutsche Bank master trust agreement will give ATAX more flexibility in managing its liquidity and overall debt portfolio at a lower cost of borrowing.”
America First Multifamily Investors also provided an update on April rental collections at properties securing its mortgage revenue bond portfolio. To date, such properties have reported average rental collections rates of 94% for April 2020 rental charges. However, the properties have cautioned that collections in future months may be lower due to the compounding effects of the COVID-19 pandemic.
“Though the future impact of COVID-19 on properties securing our mortgage revenue bonds is highly uncertain, we are encouraged by the collection efforts to date at these properties,” Daffer said.
America First Multifamily Investors was formed on April 2, 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, student housing and commercial properties.
