SAN FRANCISCO, Oct. 2 /PRNewswire-FirstCall/ -- Luminent Mortgage Capital, Inc. today announced the successful execution of LUM 2006-6, a securitization of $773 million of prime quality mortgage loans. LUM 2006-6 is Luminent's first securitization using its own shelf registration.
"This transaction advances Luminent's profitable strategy of investing in high credit quality with matched-book funding," said Gail P. Seneca, Luminent's Chairman of the Board and Chief Executive Officer. "We are very pleased with the excellent market reception our high quality deals have received, and with the quality of the assets we have placed on our growing balance sheet. With LUM 2006-6, Luminent has structured and invested in over $4 billion of prime quality mortgage loans and has financed them with long-term, non-recourse and matched funding to eliminate interest rate risk."
"Like all of our transactions to date, LUM 2006-6 moves us closer to our goal of securing high quality, recurring cash flows for our shareholders," said Trez Moore, Luminent's President and Chief Operating Officer. "Today's announcement contributes to the sustainability of our dividend over the long term."
Details of this and all of Luminent's loan securitizations are available under Luminent Mortgage Trust 2005-1, 2006-1, 2006-2, 2006-3, 2006-4, 2006-5 and 2006-6.
Luminent was formed in April 2003, completed its initial public offering in December 2003 and trades on the New York Stock Exchange under the ticker "LUM." Luminent is organized and conducts its operations so as to qualify as a real estate investment trust for federal income tax purposes. Luminent's principal activity is to invest in mortgage-backed securities and mortgage loans, thereby providing capital to the residential housing market. Luminent's website can be found at http://www.luminentcapital.com/ .
This news release and Luminent's filings with the Securities and Exchange Commission contain forward-looking statements that predict or describe future events or trends. The matters described in these forward-looking statements are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Luminent's control and are based on the information currently available to Luminent's management. Luminent faces many risks that could cause its actual performance to differ materially from the results expressed or implied by its forward-looking statements, including, without limitation, the possibilities that interest rates may change, that principal payment rates may change, that mortgage-backed securities or mortgage loans may not be available for purchase on favorable terms, that borrowings to finance the purchase of assets may not be available on favorable terms, that Luminent may not be able to maintain its dividend or the yield on its common stock, that Luminent may not be able to maintain its qualification as a REIT for federal income tax purposes, that Luminent may experience the risks associated with investing in real estate, including changes in business conditions and the general economy, that Luminent's strategy of purchasing mortgage loans for securitization may not continue to be successful and that Luminent's strategies may not be effective, including portfolio management and hedging strategies and strategy to protect net interest spreads. Luminent's filings with the Securities and Exchange Commission contain a more complete description of these and many other risks to which Luminent is subject. Because of those risks, Luminent's actual results, performance or financial condition may differ materially from the results, performance or financial condition contemplated by its forward-looking statements. The information set forth in this news release represents management's current expectations and intentions. Luminent assumes no responsibility to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Contact:
Christopher J. Zyda
Senior Vice President &
Chief Financial Officer
Phone: 415-217-4500
Email:
