Mortgage real estate investment trust Cerberus Mortgage Capital filed for its IPO Friday, unveiling wide ranging plans to purchase residential mortgage-backed securites and mortgage servicing rights, according to the document at the Securities & Exchange Commission.
"We intend to pursue a broad range of investments in residential mortgage whole loans and other real estate-related assets, including securitized financial assets, mortgage servicing rights, excess mortgage servicing rights and residential housing for lease, which, together with RMBS, we refer to as our target assets," the filing states.
New York-based Cerberus plans to raise $150 million in its IPO.
"We expect to use borrowings as part of our strategy," the filing states. "We intend to purchase RMBS throughout the capital structure, including not only the highest rated AAA/Aaa securities but also securities rated below investment grade or unrated securities."
Cereberus said it would also look at repurchase agreements, warehouse facilities, securitizations and re-securitizations, bank credit facilities and public and private issuances of equity and debt securities. This is in additional to its balance of agency and non-agency arbitrage investments.
This together will become the primary source of investments and financing for Cerberus, the filing indicates.