EX-99.1 2 a06-7547_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE:

11000 BROKEN LAND PARKWAY

CONTACT:

COLUMBIA, MARYLAND 21044

Investor Relations

WWW.FIELDSTONEINVESTMENT.COM

Tel: 410-772-5160

 

Toll-free: 866-438-1088

 

investors@FieldstoneInvestment.com

 

 

 

FIELDSTONE INVESTMENT CORPORATION
CLOSES $926.9 MILLION ASSET-BACKED SECURITIZATION

 

COLUMBIA, MARYLAND, March 23, 2006-Fieldstone Investment Corporation (NASDAQ: FICC) today announced the securitization by its affiliate, Fieldstone Mortgage Investment Corporation (FMIC), and the related offering of approximately $926.9 million of notes by Fieldstone Mortgage Investment Trust, 2006-1. The assets of the trust include conventional, adjustable rate and fixed-rate mortgage loans secured by first and second liens on residential properties that were originated by Fieldstone Mortgage Company, Fieldstone Investment Corporation’s mortgage origination subsidiary.

 

Lead manager for the transaction is Bear, Stearns & Co. Inc., with Credit Suisse Securities (USA) LLC, Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, acting as co-managers.

 

The securitization involved the issuance of three classes of senior notes and eleven classes of subordinated notes offered pursuant to the prospectus supplement and accompanying prospectus. Below is a summary of the notes:

 

 

 

CLASS
PRINCIPAL

 

EXPECTED

 

RATING

 

CLASS

 

AMOUNT

 

INTEREST RATE

 

MOODY’S

 

S&P

 

 

 

 

 

 

 

 

 

 

 

A1

 

$

378,966,000

 

1 MO LIBOR + 0.080%

 

Aaa

 

AAA

 

A2

 

$

342,689,000

 

1 MO LIBOR + 0.190%

 

Aaa

 

AAA

 

A3

 

$

20,547,000

 

1 MO LIBOR + 0.270%

 

Aaa

 

AAA

 

M1

 

$

33,588,000

 

1 MO LIBOR + 0.360%

 

Aa1

 

AA+

 

M2

 

$

30,789,000

 

1 MO LIBOR + 0.380%

 

Aa2

 

AA+

 

M3

 

$

17,727,000

 

1 MO LIBOR + 0.390%

 

Aa3

 

AA

 

M4

 

$

15,861,000

 

1 MO LIBOR + 0.500%

 

A1

 

AA

 

M5

 

$

14,928,000

 

1 MO LIBOR + 0.530%

 

A2

 

AA-

 

M6

 

$

14,461,000

 

1 MO LIBOR + 0.580%

 

A3

 

A+

 

M7

 

$

13,529,000

 

1 MO LIBOR + 1.100%

 

Baa1

 

A

 

M8

 

$

11,663,000

 

1 MO LIBOR + 1.300%

 

Baa2

 

A-

 

M9

 

$

9,330,000

 

1 MO LIBOR + 2.300%

 

Baa3

 

BBB

 

M10

 

$

5,598,000

 

5.00% Fixed

 

Not Rated

 

BBB

 

M11

 

$

17,260,000

 

5.00% Fixed

 

Not Rated

 

BBB-

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

$

926,936,000

 

 

 

 

 

 

 

 


 

The securitization is structured as an on-balance sheet financing. All of the notes represent obligations of Fieldstone Mortgage Investment Trust, 2006-1, a Delaware statutory trust. Fieldstone will use substantially all of the net proceeds from the securitization to relieve outstanding financing obligations secured by the mortgage loans and to fund a pre-funding account related to the notes offering.

 

Copies of the prospectus supplement and accompanying prospectus relating to the notes may be obtained from FMIC by contacting 866-365-FMIC (3642).

 

About Fieldstone Investment Corporation

 

Fieldstone Investment Corporation owns and manages a portfolio of non-conforming mortgage loans originated primarily by its mortgage origination subsidiary, Fieldstone Mortgage Company. Fieldstone has elected to be a real estate investment trust for federal income tax purposes. Founded in 1995, Fieldstone Mortgage Company is a nationwide residential mortgage banking company that originates non-conforming and conforming residential mortgage loans through over 4,700 independent mortgage brokers serviced by regional wholesale operations centers and a network of retail branch offices located throughout the country. Fieldstone is headquartered in Columbia, Maryland.

 

About Fieldstone Mortgage Investment Corporation

 

Fieldstone Mortgage Investment Corporation (FMIC) is a Maryland corporation and a wholly-owned, limited-purpose financing subsidiary of Fieldstone Investment Corporation. FMIC was formed solely for the purposes of facilitating the financing and sale of mortgage loans and mortgage-related assets.

 

Information Regarding Forward Looking Statements

 

Certain matters discussed in this press release may constitute “forward-looking statements” within the meaning of the federal securities laws and, if so, are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and the timing of certain events may differ materially from those indicated by such forward-looking statements due to a variety of risks and uncertainties, many of which are beyond Fieldstone’s ability to control or predict, including but not limited to (i) Fieldstone’s ability to successfully implement or change aspects of its portfolio strategy; (ii) interest rate volatility and the level of interest rates generally; (iii) the sustainability of loan origination volumes and current levels of origination costs; (iv) continued availability of credit facilities for the origination of mortgage loans; (v) the ability to sell or securitize mortgage loans; (vi) deterioration in the credit quality of Fieldstone’s loan portfolio; (vii) the nature and amount of competition; (viii) the impact of changes to the fair value of our interest rate swaps on our net income, which will vary based upon changes in interest rates and could cause  net income to vary significantly from quarter to quarter; and (ix) other risks and uncertainties outlined in Fieldstone Investment Corporation’s periodic reports filed with the Securities and Exchange Commission from time to time. These statements are made as of the date of this press release, and Fieldstone undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.