Terra Property Trust, Inc. (TPT), an externally managed real estate investment trust (REIT) that originates, invests in, and manages loans and assets secured by commercial real estate, and Western Asset Mortgage Capital Corporation (NYSE: WMC), an externally managed REIT that invests in, finances, and manages a portfolio of real estate-related securities, whole loans, and other financial assets, has jointly announced that they have entered into a definitive merger agreement under which TPT and WMC have agreed to combine to form a REIT that is expected to have approximately US$1.2 billion in assets and US$436 million of adjusted book value upon completion of the merger (prior to deducting transaction expenses).

Latham & Watkins LLP advised JMP Securities, as financial adviser to WMC, in the transaction with a corporate team led by Century City partner Steven Stokdyk.