Hanover Capital enters into $81 million repurchase deal with Ramius Capital Group

By Lisa Kerner

Charlotte, N.C., Aug. 10 - Hanover Capital Mortgage Holdings, Inc. said it entered into an $81 million, one-year repurchase transaction with RCG PB, Ltd., an affiliate of Ramius Capital Group, LLC, that replaces Hanover Capital's outstanding repurchase agreements, both committed and non-committed, which previously financed its subordinated mortgage-backed securities.

In addition, Hanover Capital agreed to issue Ramius 600,000 shares, or about 7.4%, of its common stock.

"The completion of this transaction will enable the company to finalize its second quarter form 10-Q filing, and to reschedule the related earnings announcement and investor conference call," Hanover Capital president and chief executive officer John Burchett stated in a company news release.

Hanover Capital is a mortgage real estate investment trust based in Edison, N.J.

Ramius is a New York investment adviser that manages assets of roughly $10 billion.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.