MuniMae Announces Progress On LIHTC Business Sale

Posted by Orb Staff on August 03, 2009 No Comments
Categories : Residential Mortgage

http://phx.corporate-ir.net/phoenix.zhtml?c=106902&p=irol-newsArticle&ID=1314921&highlight=][u]Municipal Mortgage & Equity LLC[/u][/link] (MuniMae) has completed the first closing in the sale of substantially all of the low-income housing tax credit (LIHTC) business operated by its subsidiaries MMA Equity Corp. and MMA Financial TC Corp. As previously announced June 29, the LIHTC assets of MMA Equity Corp. and MMA Financial TC Corp., other than their interests in certain guaranteed funds, are being sold to an affiliate of JEN Partners LLC, a New York-based private equity real estate firm, for an aggregate consideration of approximately $30.7 million consisting of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by the purchaser. The sale is structured to occur in two separate closings. The first closing, which occurred July 30, covers 29 tax-credit equity funds and the operating assets of the business, inclusive of substantially all of the employees, with a cash payment of $14 million and the assumption of certain liabilities. The second closing will cover the remaining assets being transferred plus the assumption of additional liabilities and the balance of the cash consideration, and is anticipated to occur within 60 days. MuniMae will retain the ownership of its interests in and the control of certain tax-credit equity funds with respect to which it has guarantee obligations. JEN Partners has been engaged to manage these funds. SOURCE:[link=http://www.munimae.com] MuniMae

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