MMA Capital Announces Sale of Assets to Hunt Companies

March 15, 2018

On January 8, 2018, MMA Capital Management announced a sale of assets, including its international investment management business, to Hunt Companies, Inc.

MMA Capital Management, LLC (“MMA Capital”) announced a series of agreements with affiliates of Hunt Companies, Inc. (“Hunt”) to sell its low-income housing tax credit business, international investment management business, renewable energy lending underwriting platform, and certain miscellaneous non-core assets. MMA Capital also converted its option to purchase the low-income housing tax credit business of Morrison Grove Management, LLC to a purchase agreement which Hunt has the right to take an assignment of if exercised.

In consideration, Hunt agreed to pay MMA Capital $57 million in the form of a seven-year note. Hunt has also agreed to buy 250,000 common shares in two tranches for an aggregate capital raise of $8,375,000 or $33.50 per share. Hunt will assume day-to-day operational services of MMA Capital and was granted a non-voting observer seat to MMA Capital’s board.

MMA Capital (NASDAQ: MMAC) is an investment manager investing in housing and renewable energy.

Hunt is a holding company that invests in businesses focused on real estate and infrastructure markets.

To read the press release: please click here.


Categories

Investment Manager M&A, Transactions