NEW YORK, May 23, 2016 /PRNewswire/ -- Imation Corp.
("Imation") (NYSE: IMN), a shareholder of Arlington Asset
Investment Corp. ("Arlington" or the "Company") (NYSE: AI), today
sent a letter to Arlington shareholders highlighting a number of
false and misleading accusations made by Arlington against
Imation. Imation believes Arlington's smear campaign was
designed to deter Arlington shareholders from accurately
understanding their voting options with respect to Arlington's
upcoming Annual Meeting of Shareholders on June 9.
Imation urges Arlington shareholders to not be fooled by
Arlington's misstatements and to vote the GOLD proxy card
today "FOR" Imation's five highly-qualified, independent,
shareholder-first nominees, who will seek to increase the value of
Arlington for the benefit of all Arlington shareholders.
The full text of the letter is below and available at
www.RISEUPARLINGTON.com:
May 23, 2016
Dear Fellow Arlington Shareholder:
Arlington Asset Investment Corp.'s ("Arlington" or the
"Company") Annual Meeting is fast approaching. Please join Imation
in a key step toward restoring shareholder value at Arlington by
voting "FOR" the election of Imation's five nominees —
Scott R. Arnold, Barry L. Kasoff, Raymond
C. Mikulich, Donald H. Putnam
and W. Brian Maillian — on the
GOLD PROXY CARD TODAY. If you have previously signed and
returned a white proxy card, it is not too late to change your
voting preference. Your vote on the GOLD proxy card is
critical in order to protect the value of your investment.
DO NOT BE MISGUIDED BY ARLINGTON'S FALSE AND
MISLEADING CLAIMS ABOUT IMATION
Arlington has made a number of false and misleading accusations
against Imation during this proxy contest. We believe you deserve
to know the truth about Imation, our nominees and our go-forward
strategy to restore value at Arlington so that you can make an
informed decision at the Arlington Annual Meeting of Shareholders
on June 9.
ARLINGTON IS WRONG ABOUT IMATION'S
RESTRUCTURING
Arlington has made false statements regarding Imation's ongoing
restructuring and compensation paid to the Imation Board during a
period in which then-current management was unsuitable to
serve.
The truth is Imation's current Board members identified problems
plaguing the company and stepped up to address the situation when
then-current management was unequipped to do so. Imation's
directors invested their own cash to support a strategic,
value-creating turnaround of Imation, which included a termination
of Imation's underperforming legacy businesses, an aggressive
rationalization of corporate overhead (including a sale of the
company's corporate headquarters), an amendment to the company's
cash investment policy, and a revised go-forward business strategy
supported by well-calculated acquisitions. Upon completion of
Imation's restructuring plan, Imation will be a leaner, nimbler and
more focused company that will be well-positioned for ongoing
success.
ARLINGTON IS WRONG ABOUT IMATION'S RELEVANT
INDUSTRY EXPERTISE
Arlington has made false statements regarding the industry
experience of Imation's slate. The fact is Arlington's
incumbent slate has no direct mortgaged-backed securities ("MBS")
investing experience outside of its management representatives and
lacks the necessary MBS and asset management skills to create value
at Arlington. And yet these are people charged with
overseeing your investment and management team. Imation's
nominees, on the other hand, have significant expertise in MBS,
real estate investing and asset management, and we believe are
all far more qualified than Arlington's incumbent
directors.
ARLINGTON HAS MISSTATED OUR INTENTIONS ON
DIVIDENDS
Arlington has made false statements implying that we would
reduce the Company's dividend. The fact is we believe
management's inability to generate operating earnings to pay the
dividend has led to severe deterioration in book value.
Maintaining the current dividend and paying dividends in the future
are fundamental to our go-forward strategy. The key
distinction is we want to improve operating earnings and reduce
risks to ensure the dividend is sustainable and has the potential
to be increased in the future.
ARLINGTON HAS GIVEN SHAREHOLDERS FALSE HOPE IN
A FULL RETURN OF BOOK VALUE
We have shown in our materials that management has deceived
shareholders in its presentation of its true operating earnings and
financial health. For years, management has masked poor
performance by paying a dividend from capital reserves and new
equity financings. Arlington has told shareholders that "book
value declines are temporary." The truth is Arlington covered
a substantial part of its hedge in Q1 2016, and a timely return of
book value is highly unlikely.
ARLINGTON IS WRONG ABOUT IMATION'S CASH
MANAGEMENT PROGRAM
Arlington has misrepresented our cash management program despite
our 100% transparency and significant voluntary disclosures.
Our investment agreement with the Clinton Group, Inc. for cash
management calls for no management fee and a 25% incentive fee
based upon value creation subject to a high-water mark. The
investment has daily liquidity and has been a profitable, flexible
cash management solution for Imation. In fact, we have offered
to abandon our proxy contest if the incumbent management team
restructures its compensation structure to mimic a no management
fee and 25% incentive fee deal. Why are they criticizing
something that they are unwilling to do?
ARLINGTON SHAREHOLDERS DESERVE BETTER
We have heard of a number of complaints from fellow shareholders
who have received harassing phone calls from Arlington's
representatives. If you are one of those shareholders, please do
not hesitate to contact us directly by calling our proxy solicitor
at 855-305-0857 or emailing us at
riseuparlington@imation.com.
Unfortunately, we have been unable to contact many of you as
Arlington has refused to provide us with a copy of its shareholder
list. Therefore, you are only hearing one side of the story — the
Arlington side, which is riddled with false and misleading claims
regarding Imation and its nominees. We invite you to review the
materials available at www.RISEUPARLINGTON.com to learn
about our nominees and to get a clear and accurate picture of
Imation's strategy for Arlington so that you may make an informed
voting decision.
Do not be fooled by Arlington, who is wasting shareholders'
dollars – your money – on this long and costly proxy fight. We
urge you to protect the value of your investment and vote the
GOLD PROXY CARD TODAY for Imation's five highly-qualified,
independent, shareholder-first nominees, who will seek to increase
the value of Arlington for the benefit of all Arlington
shareholders.
LEARN MORE AT
www.RISEUPARLINGTON.com
Your Vote Is Important. No matter how many shares of Arlington
you own, we urge you to vote your GOLD proxy today, to
ensure that your instructions are received in a timely manner.
Please vote by telephone or Internet by following the instructions
on the enclosed GOLD proxy card or by signing, dating and
mailing your card in the enclosed envelope.
If any of your shares of common stock are held in the name of a
brokerage firm, bank, bank nominee or other institution, they can
only vote your shares upon receipt of your specific
instructions.
Thank you for your support,
Joseph A. De Perio
Chairman, Imation Corp.
If you have any
questions, require assistance with voting your
GOLD proxy card, or need
additional copies of
the proxy materials, please contact our proxy solicitor:
OKAPI
PARTNERS
|
1212 Avenue of the
Americas, 24th Floor
|
New York, NY
10036
|
(212)
297-0720
|
Shareholders Call
Toll-Free at: 855-305-0857
|
E-mail:
info@okapipartners.com
|
About Imation Corp.
Imation (NYSE: IMN) is a holding
company that operates through a subsidiary engaged in global data
storage and data security business. At the corporate level, there
is an ongoing strategic review as Imation expects to seek and
explore new opportunities that will allow it to pursue a diverse
range of business opportunities and deploy its excess cash. For
more information, visit www.imation.com.
IMATION CORP., ROBERT B.
FERNANDER, CLINTON MAGNOLIA
MASTER FUND, LTD., CLINTON GROUP,
INC., JOSEPH A. DE PERIO, AND GEORGE
E. HALL, SCOTT R. ARNOLD,
BARRY L. KASOFF, W. BRIAN MAILLIAN, RAYMOND C. MIKULICH, AND DONALD H. PUTNAM
(COLLECTIVELY, THE "PARTICIPANTS") HAVE FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION (THE "SEC") A DEFINITIVE PROXY STATEMENT
AND ACCOMPANYING FORM OF PROXY CARD TO BE USED IN CONNECTION WITH
THE PARTICIPANTS' SOLICITATION OF PROXIES FROM THE SHAREHOLDERS OF
ARLINGTON ASSET INVESTMENT CORP., INC. (THE "COMPANY") FOR USE AT
THE COMPANY'S 2016 ANNUAL MEETING OF SHAREHOLDERS (THE "PROXY
SOLICITATION"). ALL SHAREHOLDERS OF THE COMPANY ARE ADVISED TO READ
THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE
PROXY SOLICITATION BECAUSE THEY CONTAIN IMPORTANT INFORMATION,
INCLUDING ADDITIONAL INFORMATION RELATED TO THE PARTICIPANTS. THE
DEFINITIVE PROXY STATEMENT AND AN ACCOMPANYING PROXY CARD WILL BE
FURNISHED TO SOME OR ALL OF THE COMPANY'S SHAREHOLDERS AND ARE,
ALONG WITH OTHER RELEVANT DOCUMENTS, AVAILABLE AT NO CHARGE ON THE
SEC'S WEBSITE AT HTTP://WWW.SEC.GOV/.
INFORMATION ABOUT THE PARTICIPANTS AND A DESCRIPTION OF THEIR
DIRECT OR INDIRECT INTERESTS BY SECURITY HOLDINGS IS CONTAINED IN
THE DEFINITIVE PROXY STATEMENT ON SCHEDULE 14A FILED BY IMATION
WITH THE SEC ON MAY 4, 2016. THIS
DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCE INDICATED
ABOVE.
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SOURCE Imation Corp.