New York Mortgage Trust closed its investment of up to $750,000 in senior secured notes issued by New Bridger Holdings the parent company of Bridger Commercial Funding.
Bridger Commercial Funding is a 12 year old firm specializing in originating and funding commercial mortgages primarily via a nationwide network of commercial banks.
Bridger includes its loans in larger securitization pools resulting in the issuance of both investment and non-investment grade commercial mortgage backed securities.
As part of the transaction, New York Mortgage Trust also received warrants to acquire Class C units equal to up to 25% of the fully diluted equity interests of New Bridger Holdings.
In addition, the firm has an option to purchase an additional 23% of the fully diluted equity interests of New Bridger Holdings.
In terms of the firm's investment in the Bridger notes, New York Mortgage Trust and Bridger Commercial Funding entered into a mortgage loan origination program agreement pursuant to which Bridger agrees to use its commercially reasonable best efforts to cause "B-pieces" that are part of a securitized pool of commercial mortgage loans originated, at least in part, by Bridger to be offered to New York Mortgage Trust for purchase on terms like those offered to other third parties.