NEW YORK--( BUSINESS WIRE )--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 ("CRE"), 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, today jointly announced that they have entered into a definitive merger agreement (the "Agreement") under which TPT and WMC have agreed to combine to form a REIT that is expected to have approximately $1.2 billion in assets and $436 million of adjusted book value upon completion of the merger (prior to deducting transaction expenses). Under the terms of the Agreement, WMC will issue to TPT stockholders newly designated shares of WMC Class B common stock as merger consideration.