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Hunt Cos. to buy Morrison Grove's low-income housing tax credit biz

An affiliate of Hunt Cos. Inc. has exercised the company's option to take assignment of MMA Capital Management LLC's commitment to acquire the low-income housing tax credit business of Morrison Grove Management LLC.

MMA Capital in January sold its low-income housing tax credit, or LIHTC, business, international investment management business, renewable energy lending underwriting platform and certain miscellaneous noncore assets to Hunt affiliates. In addition, MMA Capital's option to buy Morrison Grove's LIHTC business was converted to a purchase agreement and Hunt was given an option to take an assignment of the agreement which, if exercised, would result in Hunt also acquiring the business.

As a result of the deal, MMA Capital will recognize an increase in common shareholders' equity of approximately $14.2 million in the fourth quarter, or approximately $2.32 per share.

MMA Capital also closed some additional transactions completing the disposition of Morrison Grove's related assets. These additional transactions included Hunt's acquisition of a $9.0 million senior loan from MMA Capital for $9.4 million, a loan MMA Capital previously acquired from a Morrison Grove affiliate.

Further, MMA Capital acquired $10.0 million in Hunt notes from the Morrison Grove principals, for $5.0 million in cash and $5.0 million in a company note, which is payable quarterly in arrears, bears an interest rate of 5.0% and has a maturity date of Jan. 1, 2026. The purchase of the Hunt notes will increase the principal balance of MMA Capital's existing note from Hunt to $67.0 million from $57.0 million.