Hanover Capital Mortgage Holdings, Edison, N.J., has announced plans for a private placement of $20 million of trust preferred securities.The company said the securities will require quarterly distributions and bear a fixed interest rate of 8.55% for the first five years and will reset quarterly thereafter at the prevailing three-month London interbank offered rate plus 4.25%. Hanover Capital plans to use the net proceeds for general corporate purposes and to invest in subordinated mortgage-backed securities. The company, a mortgage real estate investment trust, can be found online at http://www.hanovercapitalholdings.com.
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