Annaly Mortgage Management, Inc. Announces Formation of Annaly International Money Management
New Maryland REIT Will Operate Through Three Offshore Components to Acquire,
Restructure and Invest in Foreign-based Mortgages
NEW YORK, March 5 /PRNewswire/ -- Annaly Mortgage Management, Inc. (NYSE: NLY) announced today the formation of Annaly International Money Management, Inc. ("AIMM"), an independently capitalized and operated firm centered on creating a management company structure that will originate diverse pools of short-term lending alternatives, management fee income and new classes of foreign-based, high-quality REIT-qualified assets.
AIMM, structured as a U.S.-based, Maryland real estate investment trust (REIT) holding interest in three separate entities located offshore in Dublin, Ireland, will operate in concert with Annaly Mortgage Management's strategy of investing in high-quality mortgage-backed securities and diversifying sources of liability funding. By operating within Ireland's Financial Services Center (IFSC), AIMM will benefit from the IFSC's corporate and international tax- advantaged infrastructure and its access to the mortgage markets of the 11 founding member countries of the European Monetary Union (EMU).
"While Annaly Mortgage Management is structured to invest in extremely high-quality mortgages," said Michael A.J. Farrell, Annaly Mortgage Management Chairman and Chief Executive Officer, "we have remained alert to opportunities presenting themselves in other asset classes and have sought a means to capitalize on these opportunities without compromising the Company's focused acquisition strategy."
The first of AIMM's three offshore components will be a finance company. Operating in Europe, it will have the capability of functioning as an international "non-bank" bank, providing low-cost funding that will be a valuable resource in reducing the overall costs of corporate borrowings.
The second component will be a management facility that will have a contractual relationship with Fixed Income Discount Advisory Company (FIDAC), a registered investment advisor, which has already begun developing various short-term investment products. The income generated by FIDAC for management services it performs in Ireland will flow straight through to AIMM, which will maintain a tax-advantaged REIT status, to benefit AIMM shareholders.
The third component will be a special-purpose vehicle that will collect, securitize and distribute high-quality, foreign-based mortgages.
"The vertical integration of the businesses of Annaly Mortgage Management and AIMM will create the first branch of a unique corporate structure whose capabilities will directly enhance the value of the entire Annaly franchise and will provide Annaly Mortgage Management shareholders with the benefits of broadened investment strategies, with minimal risk," Mr. Farrell said.
Annaly Mortgage Management will hold a founder's share stake in AIMM, whose other shareholders will initially include additional managers, employees and strategic partners. |
