Ellington Financial Announces Intended Corporate Conversion

OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial LLC (NYSE:EFC) (“Ellington Financial” or the
“Company”) announced today that it intends to convert from a Delaware
limited liability company to a Delaware corporation. The conversion is
expected to be completed on or about March 1, 2019. Because the Company
has already elected to be treated as a corporation for U.S. federal
income tax purposes effective January 1, 2019, no material tax or
financial changes are expected as a result of the state law conversion.
As announced on February 13, 2019, the Company intends to elect to be
taxed as a real estate investment trust commencing with its taxable year
ending December 31, 2019.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
numerous risks and uncertainties. Actual results may differ from the
Company’s beliefs, expectations, estimates, and projections and,
consequently, you should not rely on these forward-looking statements as
predictions of future events. Forward-looking statements are not
historical in nature and can be identified by words such as “believe,”
“expect,” “anticipate,” “estimate,” “project,” “plan,” “continue,”
“intend,” “should,” “would,” “could,” “goal,” “objective,” “will,”
“may,” “seek,” or similar expressions or their negative forms, or by
references to strategy, plans, or intentions. Examples of
forward-looking statements in this press release include, without
limitation, statements regarding the Company’s planned REIT election and
the consequences of the planned state law conversion. The Company’s
results can fluctuate from month to month and from quarter to quarter
depending on a variety of factors, some of which are beyond the
Company’s control and/or are difficult to predict, including, without
limitation, changes in interest rates and the market value of the
Company’s securities, changes in mortgage default rates and prepayment
rates, the Company’s ability to borrow to finance its assets, changes in
government regulations affecting the Company’s business, the Company’s
ability to maintain its exclusion from registration under the Investment
Company Act of 1940, the Company’s ability to qualify and maintain its
qualification as a real estate investment trust, or “REIT,” and other
changes in market conditions and economic trends. Furthermore,
forward-looking statements are subject to risks and uncertainties,
including, among other things, those described under Item 1A of the
Company’s Annual Report on Form 10-K filed on March 15, 2018 which can
be accessed through the Company’s website at
www.ellingtonfinancial.com
or at the SEC’s website (
www.sec.gov).
Other risks, uncertainties, and factors that could cause actual results
to differ materially from those projected or implied may be described
from time to time in reports the Company’s files with the SEC, including
reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.

About Ellington Financial

Ellington Financial invests in a diverse array of real-estate-related
and other financial assets, including residential and commercial
mortgage-backed securities, residential and commercial mortgage loans,
consumer loans and asset-backed securities backed by consumer loans,
collateralized loan obligations, non-mortgage and mortgage-related
derivatives, equity investments in loan origination companies, and other
strategic investments. Ellington Financial is externally managed and
advised by Ellington Financial Management LLC, an affiliate of Ellington
Management Group, L.L.C.

Contacts

Investors:
Ellington Financial
Investor Relations, 203-409-3575
[email protected]
or
Media:
Gasthalter
& Co., for Ellington Financial
Amanda Klein / Kevin FitzGerald,
212-257-4170
[email protected]

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