Bimini and Opteum sign definitive agreement to mergeMortgagePress.comBimini,Opteum,mortgage
Bimini Mortgage Management Inc., a real estate investment trust
that invests primarily in residential mortgage-related securities,
has signed a definitive merger agreement with Opteum Financial
Services, a privately held home mortgage lender headquartered in
Paramus, N.J. With nearly 1,000 associates operating out of 30
offices and lending in 44 states, Opteum expects to originate or
acquire approximately $7.4 billion in mortgage loans for the fiscal
year ending Nov. 30. The transaction, in which Opteum will become a
subsidiary of Bimini, is expected to close in November 2005 and is
subject to customary closing conditions. Bimini expects the
transaction will be accretive to earnings in 2006 and beyond.
Commenting on the agreement, Jeffrey J. Zimmer, Bimini chairman,
co-founder, president and CEO, said, "This transaction represents
an excellent opportunity for both companies. From our standpoint,
we are diversifying our revenue stream while remaining in our area
of expertise--the residential mortgage market. At the same time, we
are establishing a broader base for future growth. We have known
members of Opteum's management team for a number of years and
believe they are among the best and most experienced in the home
mortgage business. We are excited about the opportunity to commit
capital to them as all of our shareholders will benefit."
Peter R. Norden, chairman, co-founder, president and CEO of
Opteum Financial Services, added, "We believe this transaction
offers an excellent opportunity for our company and our associates
on many fronts. The management team at Bimini is highly regarded
for their in-depth knowledge of mortgage-backed securities, their
liquidity management skills, their capital markets expertise and
their commitment to the application of best practices and low-cost
operations. We can continue to grow as opportunities present
themselves as part of this very well run, publicly held company and
attract capital at more favorable rates. That in turn will create
new jobs and improved opportunities for our existing
associates."
Management
Jeffrey J. Zimmer will continue as chairman, president and CEO of
Bimini. Peter R. Norden will continue as chairman, president and
CEO of Opteum and will become senior executive vice president and a
director of Bimini. Robert E. Cauley, currently CFO and chief
investment officer of Bimini, will become vice chairman of the
board of Bimini Mortgage Management Inc. Martin J. Levine,
co-founder of Opteum, will continue in his role as COO of Opteum.
Rick E. Floyd, an Opteum shareholder, shall continue in his role as
head of all origination and production operations. Jason Kaplan,
who represents the family that provided a major portion of Opteum's
financing, will join the Bimini board for a one-year term.
For more information, visit www.opteum.com or www.biminireit.com.
