SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 29, 2002
MUNICIPAL MORTGAGE & EQUITY, LLC
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(Exact Name of Registrant as Specified in its Charter)
Delaware 001-11981 52-1449733
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
218 North Charles Street, Suite 500, Baltimore, Maryland 21201
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(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (443) 263-2900
N/A
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(Former Name and Former Address, if Changed Since Last Report)
Item 5. Other Events.
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On January 29, 2002, Municipal Mortgage & Equity, LLC ("Registrant")
announced the final redemption of all four classes of its preferred securities
and Term Growth Shares as a consequence of events requiring redemption as
described in the Registrant's Amended and Restated Operating Agreement.
Reference is made to the press release, dated January 29, 2002, for further
information regarding the redemption.
Item 7. Financial Statements and Exhibits.
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(a) Exhibits
Exhibit No. Exhibit
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20.1 Press release, dated January 29, 2002, announcing the
final redemption of all four classes of preferred
securities and Term Growth shares
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
MUNICIPAL MORTGAGE & EQUITY, LLC
By: /s/ Michael L. Falcone
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Michael L. Falcone
President and Chief Operating Officer
Date: January 29, 2002
Exhibit 20.1
PRESS RELEASE Contact: Angela Richardson
FOR IMMEDIATE RELEASE Investor Relations
(888) 788-3868
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MuniMae Announces Final Redemption of All Four Classes
of Preferred Securities and Term Growth Shares
BALTIMORE, MD, January 29, 2002 -- Municipal Mortgage & Equity, LLC (NYSE: MMA)
announced today that all four classes of its preferred securities (Series I
Preferred Shares, Series I Capital Distribution Preferred Shares, Series II
Preferred Shares, and Series II Capital Distribution Preferred Shares) will be
fully redeemed as a consequence of mandatory triggering events described in the
Company's Amended and Restated Operating Agreement. The events requiring this
final redemption include a combination of par value appraisals, sales of certain
assets, and in one case, redemption of a bond by its issuer.
MuniMae Chairman and CEO, Mark K. Joseph, commented, "This final redemption, as
mandated by our Operating Agreement, greatly simplifies the Company's balance
sheet and reduces administrative expenses. Although the remaining preferred
securities represent less than 2% of MuniMae's total capitalization, we
appreciate the loyalty of these original shareholders. With this redemption the
Company fulfills its remaining obligations to those shareholders that elected to
receive preferred shares in the 1996 merger that created MuniMae. The Company is
pleased to pay out the holders of the preferred securities according to their
terms. At the same time, we benefit our Common Shareholders by simplifying our
capital structure."
The Company is currently calculating the final cash distributions to holders of
the preferred securities in accordance with the terms of its Operating
Agreement. MuniMae expects these distributions to be made in February.
Redemption of the preferred securities also triggers the simultaneous redemption
of the Company's Term Growth Shares, which are currently entitled to a fixed
percentage of the Company's cash distributions after preferred dividends.
MuniMae and its subsidiaries originate, service and asset manage investments in
multifamily debt and equity for its own account and on behalf of others. At
year-end 2001, assets under management were in excess of $2.8 billion secured by
784 properties and 80,982 units in 48 states and the U.S. Virgin Islands. For
its proprietary accounts, MuniMae primarily holds tax-exempt multifamily housing
bonds. This on-balance sheet portfolio of tax-exempt bonds is secured by 117
properties containing 28,316 units in 22 states. Of these bonds, approximately
forty percent provide for MuniMae to participate in the appreciation of the
underlying apartments.
MuniMae is organized as a limited liability company. This structure allows
MuniMae to combine the limited liability, governance and management
characteristics of a corporation with the pass-through income features of a
partnership. As a result, the tax-exempt income MuniMae derives from certain
investments remains tax-exempt when it passes through to shareholders.
Distributions to shareholders are declared quarterly and paid in February, May,
August and November.
This press release contains statements which are forward looking in nature and
reflect management's current views with respect to future events and financial
performance. These statements are subject to many uncertainties and risks and
should not be considered guarantees of future performance. Actual results may
vary materially from projected results based on a number of factors, including
the actual performance of the properties pledged as collateral for the
portfolio, general conditions in the local real estate markets in which the
properties are located and prevailing interest rates.
MUNIMAE: TAX-EXEMPT DIVIDENDS AND GROWTH THROUGH REAL ESTATE
www.munimaemidland.com