Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent events

Subsequent Events

Loan Acquisitions

The Company has acquired 677 residential RPLs with aggregate UPB of $123.2 million in one transaction from a single seller. The purchase price equals 92.5% of UPB and 60.0% of the estimated market value of the underlying collateral of $189.9 million. These loans were acquired into the joint venture formed in March 2020 with proceeds from the established prefunding account.

Preferred Stock

On April 6, 2020, the Company closed a private placement of $80.0 million of preferred stock and warrants to institutional accredited investors pursuant to a securities purchase agreement dated April 3, 2020. The Company issued 820,000 shares of 7.25% Series A Fixed-to-Floating Rate Preferred Stock and 2,380,000 shares of 5.00% Series B Fixed-to-Floating Rate Preferred Stock, each at a purchase price per share of $25.00 and two series of five-year warrants to purchase an aggregate of 4,000,000 shares of the Company's common stock at an exercise price of $10.00 per share. Each series of warrants includes a put option that allows the holder to sell the warrants to the Company at a specified put price on or after July 6, 2023. In addition, the Company granted the purchasers an option to purchase up to an additional 800,000 shares of Series A Preferred Stock and Series B Preferred Stock and warrants to purchase an aggregate of 1,000,000 shares of the Company's common stock on the same terms. The Company expects to use the net proceeds from the private placement to acquire mortgage loans and mortgage-related assets consistent with its investment strategy.

Management Agreement Amendment

On April 28, 2020 , the Company's Board of Directors approved the Third Amended and Restated Management Agreement with the Manager, which provides the Company with the option to pay its management fee between 50% to 100% cash at the Company's discretion, and pay the remainder in shares of its common stock.

Dividend Declaration

On May 3, 2020, the Company’s Board of Directors declared a cash dividend of $0.17 per share, to be paid on May 29, 2020 to stockholders of record as of May 15, 2020. On March 27, 2020, the Company paid the dividend of $0.32 per share we previously announced in February 2020 in shares of our common stock (valued based upon the closing price on the record date) in lieu of cash.