New Residential Investment Corp. agreed to sell about $6.1 billion in face value of nonagency residential mortgage-backed securities to several buyers, which were not specified in a news release announcing the sale.
The company does not expect the transactions to affect its previously reported estimated book value, which is expected to be down about 25% to 30% from $16.21 as of Dec. 31, 2019. The estimated book value is primarily based on management's estimates, not on third-party valuations, of New Residential Investment's assets as of March 27, and the company said the ongoing turmoil in financial markets makes asset value estimates less reliable than usual.
The company expects the sale to generate proceeds of about $3.3 billion, excluding unpaid but accrued interest, according to a regulatory filing. New Residential Investment intends to use the net proceeds to repay a portion of debt it previously incurred in relation to the securities.
New Residential Investment also slashed its dividend in order to preserve its liquidity.