Ellington Financial LLC Announces Second Quarter Dividend of $0.45 Per Share

OLD GREENWICH, Conn.–(BUSINESS WIRE)–Ellington Financial LLC (NYSE:EFC) (the “Company”) today announced that
its Board of Directors has declared a dividend for the second quarter of
2017 of $0.45 per share, payable on September 15, 2017 to shareholders
of record as of September 1, 2017.(1) Subject to the ultimate
discretion of the Board of Directors, the Company’s management expects
to continue to recommend quarterly dividends of $0.45 per share until
conditions warrant otherwise. At the end of each year, the Board of
Directors takes into account the Company’s earnings and other factors to
consider whether to declare a special dividend. Periodically, management
may adjust its quarterly dividend recommendation based on the Company’s
actual earnings, management’s assessment of the Company’s long-term
earnings prospects, and other factors. The declaration and amount of
future dividends remain at the discretion of the Board of Directors.

(1) For U.S. federal income tax purposes, the
second quarter 2017 dividend will be treated as a capital distribution
to shareholders of record as of September 1, 2017. In computing their
2017 U.S. federal taxable income, U.S. shareholders will generally be
required to take into account their allocable share of the Company’s
taxable income as reported to them on their 2017 Schedules K-1.

For tax withholding purposes, the distribution consists of the
following components:

   
Amount of Dividend
Interest Income (U.S.) that Qualifies for the Portfolio Interest
Exception
(1)
$ 0.4208
Other Interest Income (2) $
U.S. Dividend Income (2) $ 0.0292
Total Distribution Per Unit (3) $ 0.4500
     

(1)

 

As described in §871 (h) of the Internal Revenue Code (“the
Code”).

(2)

Subject to withholding under §1441 of the Code.

(3)

No portion of this distribution represents income effectively
connected with a U.S. trade or business. Notwithstanding the
foregoing, some portion of future dividends may represent income
effectively connected with a U.S. trade or business.

 

The Company does not provide advice on tax matters to its
shareholders or to broker/nominees who hold the Company’s shares on
behalf of their customers. The information above is provided for
informational purposes only, is subject to change as more definitive
information is obtained by the Company, and does not constitute tax
advice. Non-U.S. holders of the Company’s common shares and
broker/nominees who hold shares on behalf of such holders are strongly
urged to consult with their own tax advisors with regard to the U.S.
federal income tax consequences of the dividends paid by the Company.
This information is not intended to, and cannot, be used by any taxpayer
to avoid penalties that may be imposed under U.S. federal income tax law.

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. Our actual results may differ from our
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 statements regarding the Company’s
intended dividend policy. 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 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 our Annual Report on Form
10-K filed on March 16, 2017, 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 may be described from time to
time in reports we file with the SEC, including reports on Forms 10-Q,
10-K and 8-K. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.

About Ellington Financial LLC

Ellington Financial LLC is a specialty finance company that primarily
acquires and manages mortgage-related and consumer-related assets,
including residential mortgage-backed securities, residential and
commercial mortgage loans, consumer loans and asset-backed securities
backed by consumer loans, commercial mortgage-backed securities, real
property, and mortgage-related derivatives. The Company also invests in
corporate debt and equity, including distressed debt, collateralized
loan obligations, non-mortgage-related derivatives, and other financial
assets, including private debt and equity investments in
mortgage-related entities. Ellington Financial LLC is externally managed
and advised by Ellington Financial Management LLC, an affiliate of
Ellington Management Group, L.L.C.

Contacts

Investors:
Ellington Financial LLC
Maria Cozine,
203-409-3575
Vice President of Investor Relations
or
Lisa
Mumford, 203-409-3575
Chief Financial Officer
info@ellingtonfinancial.com;
or
Media:
Amanda
Klein, 212-257-4170
or
Kevin Fitzgerald, 212-257-4170
Ellington@gasthalter.com.