Terra Property Trust And Western Asset Mortgage Capital Corporation Announced Merger
Portfolio Pulse from Charles Gross
Terra Property Trust, Inc. (TPT) and Western Asset Mortgage Capital Corporation (NYSE:WMC) have announced a definitive merger agreement. The combined REIT is expected to have approximately $1.2 billion in assets and $436 million of adjusted book value. WMC will issue new Class B common stock to TPT stockholders as merger consideration. Post-merger, TPT stockholders are expected to own approximately 76% of the combined company's outstanding common stock, while WMC stockholders are expected to own approximately 24%.
June 28, 2023 | 10:14 am
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Western Asset Mortgage Capital Corporation (WMC) is merging with Terra Property Trust, Inc. (TPT). WMC will issue new Class B common stock to TPT stockholders as merger consideration. Post-merger, WMC stockholders are expected to own approximately 24% of the combined company's outstanding common stock.
The merger will result in a larger, more diversified company. However, the impact on WMC's stock price is uncertain as it will depend on the market's perception of the merger's benefits and the future prospects of the combined entity.
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