Ellington Financial Inc. · NYSE:EFC
Ellington Financial — Merger or Acquisition (July 2023)
13 slides from Ellington Financial's merger presentation, Jul 3, 2023
Slide 1: Ellington Financial Inc. to Acquire Great Ajax Corp.
Ellington Financial Inc. to Acquire Great Ajax Corp. July 3, 2023
Slide 2: Additional Information About the Merger
ADDITIONAL INFORMATION ABOUT THE MERGER In connection with the proposed merger, Ellington Financial Inc. (“EFC”) intends to file a registration statement on Form S - 4 wi th the SEC that includes a Great Ajax Corp. (“AJX”) proxy statement and an EFC prospectus. This communication is not a substitute
Slide 3: Transaction Overview
Transaction Overview 3 Transaction Summary • Ellington Financial Inc. (NYSE:EFC) has entered into an agreement to acquire Great Ajax Corp. (NYSE: AJX) by issuing new shares of EFC common stock to AJX’s stockholders using an exchange ratio of 0.5308x (1) Merger Consideration (2) • Exchange ratio woul
Slide 4: Transaction Highlights
Transaction Highlights 4 1) Based on the closing stock price for EFC’s common stock of $13.80 on June 30, 2023. The pro forma market cap does not take in to account the EFC/Arlington Merger. » AJX’s $1+ billion investment portfolio of first - lien residential RPL and NPL investments, most of which a
Slide 5: Great Ajax Corp. Overview
Residential RPLs 64.3% Residential NPLs 7.7% SBC loans 0.8% REO properties, net 0.4% Securities available - for - sale 11.0% Securities HTM 5.5% Investments in beneficial interests 10.2% Great Ajax Corp. Overview Summary Statistics $(mm) Company Externally Managed Mortgage REIT Headquarters Tigard,
Slide 6: Anticipated Benefits of the Transaction
Anticipated Benefits of the Transaction Anticipated Benefits to AJX Common Stockholders Anticipated Benefits to EFC Stockholders Synergistic expansion of existing investment portfolio through addition of complementary investment portfolio and related strategic investments Expected to be accretive to
Slide 7: Ellington Financial Overview
Ellington Financial Inc. Overview 7 $3.7bn Diversified Investment Portfolio 8.5% Annualized Total Return Since Inception $1.4bn Total Equity $1.0bn Common Equity Hybrid mortgage REIT with diversified investment portfolio and income stream: residential and commercial mortgage, consumer /corporate loa
Slide 8: About Ellington Management Group
About Ellington Management Group 8 Ellington and its Affiliated Management Companies • EFC’s external manager is part of the Ellington family of SEC - registered investment advisors (4) • Ellington Management Group and its affiliates manage EFC, Ellington Residential Mortgage REIT (EARN), multi - in
Slide 9: EFC's Performance Since Inception
EFC’s Performance Since Inception EFC #7 #2 #3 #6 #4 #5 #8 #9 Note: EFC peers are other hybrid mortgage REITs. Above charts have been normalized for stock splits. Reflects data reported from EFC’s inception through March 31, 2023. 9 Cumulative Total Economic Return Since EFC’s Inception (110%) (60%)
Slide 10: EFC: Stable Returns During Financial Crises, including 2008
EFC: Stable Returns During Financial Crises, including 2008… 0% 25% 50% 75% 100% 125% 2007 2007 2008 2008 2008 2008 EFC Peer #2 Peer #3 Peer #4 Peer #5 EFC #2 #3 #4 #5 (100%) (75%) (50%) (25%) 0% 2007 2007 2008 2008 2008 2008 EFC Peer #2 Peer #3 Peer #4 Peer #5 EFC #2 #3 #4 #5 Note: EFC peers are ot
Slide 11: ...and 2020
(110%) (90%) (70%) (50%) (30%) (10%) 10% 2019 2020 2020 2020 2020 EFC Peer #2 Peer #3 Peer #4 Peer #5 Peer #6 Peer #7 Peer #8 Peer #9 …and 2020 EFC #7 #2 #3 #6 #4 #5 #8 #9 Note: EFC peers are other hybrid mortgage REITs. Above charts have been normalized for stock splits. Q1 2020 Q2 2020 Q3 2020 Q4
Slide 12: Glossary of Terms
The following defines certain terms used in this presentation: • “ARM” refers to adjustable - rate mortgages • “CLO” refers to collateralized loan obligations • “ HTM ” refers to held - to - maturity • “Hybrid ARM” refers to an ARM for which the interest rate is fixed for an initial period (typicall
Slide 13: Investors: Investor Relations (203) - 3575 Info@ellingtonfinancial.com Media: Amanda Shpiner or Sara Widmann Gasthalter
Investors: Investor Relations Ellington Financial Inc. (203) 409 - 3575 Info@ellingtonfinancial.com Media: Amanda Shpiner or Sara Widmann Gasthalter & Co. for Ellington Financial Inc. (212) 257 - 4170 Ellington@gasthalter.com Ellington Financial Inc. 53 Forest Ave Old Greenwich, CT 06870 www.ellingt
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