America First Multifamily Investors, L.P. Announces Significant Debt Refinancing and Business Update

OMAHA, Neb., May 04, 2020 (GLOBE NEWSWIRE) -- America First Multifamily Investors, L.P. (NASDAQ:  ATAX) (the “Partnership” or “ATAX”) announced today that on April 30, 2020, it terminated all of the Partnership’s outstanding debt financing arrangements with Deutsche Bank AG (“Deutsche Bank”). The Partnership repaid outstanding principal totaling approximately $51.8 million that previously had fixed interest rates ranging from 4.01% to 4.53%. In addition, the Partnership terminated its Master Trust Agreement with Deutsche Bank and is no longer subject to its financial and non-financial covenant provisions.

Concurrent with the termination of the debt financing arrangements with Deutsche Bank, the Partnership entered into five variable rate Tender Option Bond (“TOB”) Trust financings with Mizuho Capital Markets LLC (“Mizuho”) with initial principal balances totaling approximately $55.4 million. The new TOB Trusts have variable interest rates that were set at 2.08% for their initial period at closing. The new TOB Trust financings were entered into under ATAX’s current Master Trust Agreement with Mizuho.

“I am extremely pleased to announce the closing of the TOB Trust financings with Mizuho,” said Chad L. Daffer, the Partnership’s Chief Executive Officer. “The closing of these new financing structures given current market uncertainty due to the COVID-19 pandemic is a strong indicator of ATAX’s ability to access capital markets. The relief from covenants under the Deutsche Bank Master Trust Agreement will give ATAX more flexibility in managing its liquidity and overall debt portfolio at a lower cost of borrowing.”

The Partnership also provided an update on April rental collections at properties securing the Partnership’s mortgage revenue bond portfolio. To date, such properties have reported average rental collections rates of 94% for the April 2020 rental charges. However, the properties have cautioned that collections in future months may be lower due to the compounding effects of the COVID-19 pandemic. “Though the future impact of COVID-19 on properties securing our mortgage revenue bonds is highly uncertain, we are encouraged by the collection efforts to date at these properties,” said Daffer. The Partnership will continue to closely monitor collections and other operating data of the properties associated with its mortgage revenue bond portfolio in the coming months.