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Luminent Agrees to Bailout at 74 Percent Discount

Aug 20, 2007By

Troubled REIT Luminent Mortgage Capital, Inc. said this morning that it has agreed to a bailout by Arco Capital Corporation at a steep discount: under terms of the agreement, Arco will obtain a five-year warrant to purchase up to a 51 percent interest in Luminent at 17 cents per share. That’s roughly 74 percent off of Friday’s close. In exchange, Arco will repurchase approximately $65 million in mortgage securities. The deal also would provide Luminent will access to $60 million of new capital, according to the press statement.

3d rendering of a row of luxury townhouses along a street

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