NEW YORK, July 31, 2012 /PRNewswire/ -- CIFC Corp.
(NASDAQ: DFR) ("CIFC") announced plans to enter into a 5 year
strategic relationship with GE Capital's Bank Loan business,
pursuant to which:
- A commercial council comprised of senior members of both GE
Capital and CIFC will be formed and meet regularly to assist in the
exploration of business opportunities between the two firms, and to
facilitate third party investment advisory referrals. Peter Gleysteen, Chief Executive Officer of
CIFC, and Neeraj Mehta, a GE
Officer, are slated to serve as co-chairs of the commercial
council.
- GE Capital Debt Advisors LLC, a wholly-owned indirect
subsidiary of GE Capital, is exiting its third party investment
advisory business, and has agreed to assign its role as manager of
four "Navigator" collateralized loan obligation funds representing
approximately $700 million in AUM to
CIFC Asset Management LLC, a wholly-owned subsidiary of CIFC.
- GE Capital will receive 1 million shares of CIFC common stock,
warrants to purchase two million shares of a newly created class of
non-voting CIFC preferred stock, and $4.88
million in cash from CIFC.
- GE Capital has the right to appoint an executive to CIFC's
Board of Directors.
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CIFC's Peter Gleysteen said: "We
are excited about this strategic alliance and specific
opportunities the combination will allow us to pursue, including
new investments for investors. Partnering with GE Capital also
positions CIFC for unique opportunities at the intersection of GE
Capital's business as a leading corporate lender and our loan asset
management platform."
GE Capital's Neeraj Mehta stated:
"We look forward to finding complementary and mutually beneficial
ways for our institutions to work together to create value and are
excited to be a meaningful shareholder in CIFC."
The transaction is expected to close in September 2012. Berkshire Capital Securities
advised CIFC in the transaction.
About CIFC
CIFC, based in New York,
is the largest specialized asset manager of senior secured
corporate loans in the world. CIFC combines what it believes are
the best underwriting, portfolio management and value maximization
practices to generate attractive and consistent returns for
investors. CIFC's heritage CIFC CLO fund family has market leading
performance in the U.S. managed CLO segment. The firm manages
$10.3 billion across 28 CLOs as of
March 31, 2012 and serves more than
200 institutional investors in North
America, Europe,
Asia and Australia. For more information, please CIFC's
website at www.cifc.com.
About GE Capital
GE Capital offers consumers and businesses around the
globe an array of financial products and services. For more
information, visit www.gecapital.com or follow company news
via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and
the best technologies taking on the toughest challenges. Finding
solutions in energy, health and home, transportation and finance.
Building, powering, moving and curing the world. Not just
imagining. Doing. GE works. For more information, visit the
company's website at www.ge.com.
Certain statements in this press release are forward-looking
statements, as permitted by the Private Securities Litigation
Reform Act of 1995. These include statements regarding future
results or expectations. Forward-looking statements can be
identified by forward-looking language, including words such as
"believes," "anticipates," "expects," "estimates," "intends,"
"may," "plans," "projects," "will" and similar expressions, or the
negative of these words. Such forward-looking statements are based
on facts and conditions as they exist at the time such statements
are made, various operating assumptions and predictions as to
future facts and conditions, which may be difficult to accurately
make and involve the assessment of events beyond CIFC's or GE
Capital's control. Caution must be exercised in relying on
forward-looking statements. The forward-looking statements
contained in this press release are made as of the date hereof, and
neither CIFC nor GE Capital undertakes any obligation to update any
forward-looking statement to reflect subsequent events, new
information or circumstances arising after the date hereof.
SOURCE CIFC Corp.
