Luminent receives payment demands on $1.6 billion repo loans, $580 million commercial paper

By Caroline Salls

Pittsburgh, Aug. 13 - Luminent Mortgage Capital, Inc. has received demands for immediate payment of a total of $1.6 billion from eight repo lenders in connection with the company's alleged failures to post margin or repurchase financial assets under various master repurchase agreements, according to an 8-K filed with the Securities and Exchange Commission.

In addition, the events of default on those eight master repurchase agreements prompted a default on Luminent's $90 million in 8.125% convertible senior notes due 2027 and on its $580 million in asset-backed commercial paper issued by affiliate Luminent Star Funding Statutory Trust I.

Luminent said payment on the commercial paper has been accelerated under the default, and the convertible notes could also be accelerated.

Luminent is a San Francisco-based real estate investment trust that invests in mortgage-backed securities and loans.

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