TPT, WMC Merge to Form REIT with $1.2 Billion in Assets


Terra Property Trust (TPT) Inc. and Western Asset Mortgage Capital Corporation (WMC) have entered into a definitive merger agreement to form a real estate investment trust (REIT) that is expected to have approximately $1.2 billion in assets and $436 million of adjusted book value upon completion of the merger (prior to deducting transaction expenses).

“This compelling combination is a unique opportunity to establish a diversified REIT that prioritizes capital preservation, maintains a robust balance sheet and consistently generates attractive risk-adjusted returns for its shareholders,” says Vik Uppal, CEO of TPT.

Upon completion of the merger, Uppal, will serve as CEO and chairman of the combined company, which will be headquartered in New York City. The board of the combined company is expected to have eight directors and will consist of six TPT-designated directors and two WMC-designated directors.

Unanimously approved by the boards of directors of TPT and WMC, the transaction is expected to close during the fourth quarter, subject to the respective approvals by the stockholders of TPT and WMC and other customary closing conditions.

Raymond James is acting as exclusive financial advisor and Alston & Bird LLP as legal advisor to TPT. JMP Securities, a Citizens Company, is acting as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to WMC.

Image by frimufilms on Freepik.

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