SOUTHFIELD, Mich., April 9, 2008 /PRNewswire-FirstCall/ -- Origen Financial, Inc. (Nasdaq: ORGN - News), a real estate investment trust that originates and services manufactured housing loans, today announced that it has completed a $46 million secured financing arrangement provided by an affiliate of one of Origen's principal stockholders.Ron Klein, CEO of Origen, stated "We are extremely pleased with this financing. Given the pending expiration of the extended term of our credit facilities, and amid difficult credit markets, we are fortunate to have arranged this financing on competitive terms. We have applied the proceeds of this financing to pay off our remaining obligations to our primary bank lender under our supplemental advance facility. Our loan portfolio continues to experience excellent credit performance. We are gratified that by making this investment one of our largest shareholders has confirmed his confidence in Origen. Acknowledging that the credit markets may remain unsettled for some time, we will continue to monitor our liquidity and act on opportunity to ensure that we have the financial flexibility to navigate through this difficult market environment and continue to preserve the value of our assets for our shareholders."
The financing consists of a secured note bearing interest at 14.5% per year secured by all of Origen's assets. The note matures in three years, subject to a one-year extension option by Origen. As part of the financing, Origen issued 5-year warrants to the lender to purchase 2,600,000 shares of Origen common stock at an exercise price of $1.22 per share, which equals the closing price for Origen common stock on April 7, 2008. In connection with completing the financing, the lender agreed to cancel outstanding warrants to acquire 500,000 shares of Origen common stock at an exercise price of $6.16 per share and terminated the right to convert up to $5 million of existing debt to Origen common stock at a conversion price of $6.237 per share.
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