ATLANTA, April 5 /PRNewswire-FirstCall/ -- HomeBanc Corp. (NYSE: HMB)
("HomeBanc" or the "Company") announced today the completion on March 31,
2005, of a public offering through HomeBanc Mortgage Trust 2005-2 (the
"Trust") of approximately $170.9 million of sequential-pay notes (the "Notes")
backed by adjustable rate, residential closed-end second mortgage loans. The
sequential-pay structure allows principal to be distributed to the Notes
sequentially in order of priority, which is different from the pro-rata
structure used in previous HomeBanc Mortgage Trust securitizations, which
required that principal be distributed concurrently.
The approximate amount of each class of Notes together with the interest
rate and credit ratings for each class granted by Moody's and Fitch,
respectively, are set forth below:
Class Class Interest Rate Formula Initial Ratings
Principal Amount (all 1-Month LIBOR) Moody's/Fitch
A-1 $142,133,000 LIBOR plus 0.210% Aaa/AAA
M-1 $10,737,000 LIBOR plus 0.450% Aa2/AA+
M-2 $3,080,000 LIBOR plus 0.490% Aa3/AA
M-3 $5,633,000 LIBOR plus 0.680% A2/A+
M-4 $2,464,000 LIBOR plus 0.720% A3/A
B-1 $2,112,000 LIBOR plus 1.250% Baa1/A-
B-2 $1,760,000 LIBOR plus 1.400% Baa2/BBB+
B-3 $1,761,000 LIBOR plus 1.900% Baa3/BBB-
B-4 $1,232,000 LIBOR plus 2.050% Ba2/BBB-
HMB Acceptance Corp., a HomeBanc subsidiary, acquired approximately
$4.7 million of subordinated Notes (classes B2, B3 & B4) and one certificate
representing the equity interest in the Trust.
The Trust includes approximately $176 million of adjustable rate,
residential closed-end second mortgage loans originated by HomeBanc's
subsidiary, HomeBanc Mortgage Corporation. Substantially all the mortgage
loans in the Trust consist of mortgages with a floating rate interest based on
the six-month LIBOR rate plus a margin.
The Notes issued by the Trust and held by the public will be treated as
debt for federal income tax purposes.
The Notes were sold by Bear Stearns & Co. Inc. as sole underwriter.
Kevin D. Race, HomeBanc's president, chief operating officer and chief
financial officer commented, "This is the fourth successful public offering of
mortgage backed securities and our first public offering of closed-end second
lien mortgage backed securities completed by the Company since going public in
July 2004. Accessing the capital markets via the issuance of mortgage backed
securities enhances the financing and leverage construct which supports our
overall business model as we continue to grow our mortgage portfolio."
Debra F. Watkins, HomeBanc's executive vice president of capital markets,
stated, "We are pleased with the results of the first securitization of
closed-end second mortgages completed under HomeBanc's securitization shelf
registration statement. This successful transaction is consistent with our
strategy of originating and retaining prime, adjustable rate first and second
lien mortgages and match funding such loans with lower cost securitized debt.
We expect this transaction by the Trust to be one of several securitized
financings HomeBanc completes in 2005 via our securitization shelf
registration statement."
HomeBanc Corp. is the parent company of HomeBanc Mortgage Corporation, a
mortgage banking company that focuses on originating purchase money
residential mortgage loans in the southeast United States. For more
information about HomeBanc Corp., HomeBanc Mortgage Corporation or the
Company's mortgage products, contact HomeBanc at http://www.homebanc.com.
This press release may include forward-looking statements within the
meaning and subject to the protection of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, including
statements regarding the structure, timing and size of the Company's
individual future securitization transactions. Such forward-looking
statements are based on information presently available to the Company's
management and are subject to various risks and uncertainties, including,
without limitation, those described in the Company's SEC reports and filings
under "Special Cautionary Notice Regarding Forward Looking Statements" and
"Risk Factors." You should not place undue reliance on forward-looking
statements, since the statements speak only as of the date that they are made.
The Company has no obligation and does not undertake to publicly update,
revise or correct any of the forward-looking statements after the date of this
press release, or after the respective dates on which such statements
otherwise are made, whether as a result of new information, future events or
otherwise.
|
