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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): DECEMBER 3, 2007
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AMERICAN MORTGAGE ACCEPTANCE COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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MASSACHUSETTS
(STATE OR OTHER JURISDICTION OF INCORPORATION)
0-23972 13-6972380
(COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NUMBER)
625 MADISON AVENUE, NEW YORK, NY 10022
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 317-5700
NOT APPLICABLE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.01. COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.
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As previously disclosed by American Mortgage Acceptance Company (the
"Registrant"), recent market conditions have resulted in a reduction of
liquidity across the credit spectrum of mortgage products. Market conditions
have continued to decline, increasing the credit spreads on certain mortgage
assets. This, coupled with a decline in yields on U.S. Treasury securities have
lead to margin calls on repurchase facilities and interest rate derivatives
whereby the Registrant was required to post additional cash collateral to the
facility lenders and to derivative counterparties. As such, the Registrant has
explored avenues to increase liquidity for future cash needs and sold assets as
follows:
o On November 19 and 20, 2007, the Registrant sold its portfolio of
Federal National Mortgage Association ("FNMA") and Government National
Mortgage Association ("GNMA") securities (together, the "Debt
Securities") to an unrelated third party. As a result, the Registrant
received total proceeds of $71.2 million, of which, $67.5 million was
used to repay a repurchase facility that collateralized these debt
securities. Based on the amortized cost of $73.4 million prior to the
sale, the transactions resulted in realized losses of $2.2 million.
o On December 3, 2007, the Registrant sold two Commercial
Mortgage-Backed Securities ("CMBS") to an unrelated third party. This
sale resulted in total proceeds of $ 15.6 million, of which, $14.0
million was used to repay a repurchase facility that collateralized
these CMBS. Based on the amortized cost of $25.9 million prior to the
sale, the transactions resulted in realized losses of $10.3 million.
As a result of these asset sales, the Registrant incurred $1.0 million in net
realized losses due to the termination of related interest rate derivatives.
If current market conditions continue to decline, the Registrant may be required
to post additional cash collateral due to margin calls Accordingly, the
Registrant may sell additional assets and incur additional losses. At this time,
the Registrant is unable to determine the amount of such losses if such sales
were to occur.
In addition, should deterioration of the Registrant's liquidity impede its
ability to hold certain investments, the Registrant may need to recognize
changes in the fair value of those investments as permanent losses in the fourth
quarter of 2007.
Item 7.01. REGULATION FD DISCLOSURE.
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At this time management of the Registrant is withdrawing its previously issued
earnings guidance for 2007. The portions of the Press Release attached as
Exhibit 99.1 that relate to earnings guidance are deemed to be furnished, not
filed.
ITEM 8.01. OTHER EVENTS.
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Due to the circumstances mentioned in ITEM 2.01 of this 8-K, the Registrant's
Board of Trustees resolved that no dividend be paid on its common shares of
beneficial interest for the quarter ended December 31, 2007.
ITEM 9.01. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
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(a) Financial Information.
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Exhibits
99.1 Press Release dated December 7, 2007
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
American Mortgage Acceptance Company
(Registrant)
By: /s/ Robert L. Levy
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Robert L. Levy
Chief Financial Officer
December 7, 2007