HOUSTON, April 7, 2014 – Today, 18 institutional investors represented by Gibbs & Bruns LLP (“Institutional Investors”) announced they have reached an agreement with Citigroup (“Citi”) under which Citi will make a binding offer (“Offer”) to the Trustees of 68 RMBS Trusts issued by Citi to settle mortgage repurchase claims. The Institutional Investors support the agreement and have asked the Trustees to accept it. The Trusts included in the Offer are listed on Exhibit “A.”
The Trustees will have until June 30, 2014 to accept the Offer, which may be extended pursuant to the terms of the Offer for an additional forty-five days. The Offer includes the following key terms:
1. Payment by Citi of $1.125 billion in cash to the Trusts to settle mortgage repurchase claims;
2. Reimbursement to the Trustees of expenses associated with their evaluation of the Offer; and
3. A release of all repurchase claims that have been or could have been asserted by the Trusts.
The Institutional Investors who are parties to the agreement are:
· Bayerische Landesbank
· BlackRock Financial Management Inc.
· Cascade Investment, L.L.C.
· Federal Home Loan Bank of Atlanta
· Federal Home Loan Mortgage Corporation
· Goldman Sachs Asset Management, L.P.
· ING Investment Management LLC
· Invesco Advisers, Inc.
· Kore Advisors, L.P.
· Landesbank Baden-Wuerttemberg
· Metropolitan Life Insurance Company
· Pacific Investment Management Company LLC
· Sealink Funding Limited
· Teachers Insurance and Annuity Association of America
· The Prudential Insurance Company of America
· The TCW Group, Inc.
· Thrivent Financial for Lutherans
· Western Asset Management Company