MMA Capital Mgmt 8-K Shows Company Sold Real Estate Assets For $14.4M, Will Recognize Gain of $5.0M, Enters Pact To Amend Repayment TRerms

"On May 21, 2015, MMA Capital Management, LLC (the "Company") and its wholly-owned subsidiary MMA Financial Holdings, Inc. ("MFH"), entered into a series of agreements with certain third party lenders related to $96.5 million of the Company's subordinated debt. These agreements provide for the following material changes to the terms of the subordinated debt, effective as of May 22, 2015: 1) The interest rate on the outstanding principal balance changes from the 3-month London Interbank Offered Rate (LIBOR) plus 330 basis points (bps) to 3-month LIBOR plus 200 bps; and 2) Principal payments change from a single balloon payment due in 2035 to quarterly amortization of principal in an amount per quarter equal to one-half percent (50 bps) times the then outstanding principal balance and a balloon payment of the remaining outstanding principal balance in 2035. As a result, although the Company will initially pay 70 bps per year more in cash to satisfy the combined interest and principal requirements (200 bps more in principal and 130 bps less in interest), the Company will save a substantial amount of interest expense through the maturity date of the debt in 2035. The interest savings include both the 130 bps reduction in the interest rate, as well as interest savings generated from the declining principal balance. Prior to the closing on the new agreements, MFH made interim principal payments in the aggregate principal amount of $15.4 million, which were due in calendar year 2015 under the terms of the original agreements, and which reduced the then outstanding principal balance of $111.9 million to the current balance of $96.5 million due under the new agreements. The Company remains a guarantor of the debt." --------- "On May 22, 2015, the Company sold Whispering Lakes Apartments, located in Kansas City, Missouri, for $14.4 million. As a result of the sale the Company will recognize a gain on sale of approximately $5.0 million during the second quarter of 2015."