NEW YORK, Sept. 24, 2012 /PRNewswire/ -- CIFC Corp.
(NASDAQ: DFR) ("CIFC") entered 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 was formed and will 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 assigned 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 received 1 million shares of CIFC common stock,
warrants to purchase two million shares of a newly created class of
CIFC non-voting, convertible preferred stock, and $4.88 million in cash less certain accrued
amounts from CIFC;
- GE Capital has the right to appoint a director to CIFC's Board
of Directors.
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CIFC's Peter Gleysteen
said: "We are excited to have finalized this strategic
alliance and to officially start pursuing new opportunities the
combination presents to us, including new investments for
investors. Partnering with GE Capital uniquely positions CIFC
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 are excited to now be a meaningful shareholder in CIFC and look
forward to working together."
Berkshire Capital Securities advised CIFC in the
transaction.
About CIFC
CIFC, based in New York, is one
of the largest specialized asset managers 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 had
$10.1 billion in AUM from corporate
loan based products as of June 30,
2012 and serves more than 200 institutional investors in
North America, Europe, Asia
and Australia. For more
information, please visit 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.