CYS Investments, Inc. Announces Completion of Management Internalization
September 01 2011 - 8:00AM
Business Wire
CYS Investments, Inc. (NYSE: CYS) (the “Company”) today
announced that it has completed the acquisition of certain assets
and entered into agreements to internalize the Company’s management
(the “Internalization”) as contemplated by the Company’s July 20,
2011 press release. The Company previously had been managed by
Cypress Sharpridge Advisors LLC (the “Manager”) pursuant to a
management agreement (the “Management Agreement”). The Manager had
entered into sub-advisory agreements with Sharpridge Capital
Management, L.P. (“Sharpridge”) and an affiliate of The Cypress
Group, pursuant to which the Manager was provided with all of the
resources and assets used to operate the Company’s business and
manage the Company’s assets (the “Assets”). In connection with the
completion of the Internalization, the Management Agreement,
sub-advisory agreements and other ancillary agreements related
thereto were terminated without the payment of any termination
fee.
Under the terms of the Asset Purchase and Sale Agreement entered
into to complete the Internalization, the Company acquired the
Assets from Sharpridge for a purchase price of $750,000 in cash at
closing.
The Company also entered into employment agreements with its
current Chief Executive Officer and President, Kevin E. Grant, as
Chief Executive Officer, President and Chief Investment Officer,
its current Chief Financial Officer and Treasurer, Frances R.
Spark, as Chief Financial Officer and Treasurer, its current Chief
Operating Officer, Richard E. Cleary, as Chief Operating Officer
and Assistant Secretary, and its current Secretary, Thomas A.
Rosenbloom, as Executive Vice President of Business Development,
General Counsel and Secretary. In connection with the execution of
Mr. Grant’s employment agreement, Mr. Grant received 150,000 shares
of restricted stock on September 1, 2011 that will vest ratably
over a five year vesting period, with one-fifth of the shares
vesting on each of the first five anniversary dates of the grant
date. In addition, the Company accelerated the vesting of all of
Mr. Grant’s outstanding shares of restricted stock issued prior to
September 1, 2011, so that all such shares were vested and
non-forfeitable on August 31, 2011, immediately prior to the
completion of the Internalization. Additionally, all other current
employees of Sharpridge have been hired by the Company.
In connection with the Internalization, the Company has changed
its name from “Cypress Sharpridge Investments, Inc.” to “CYS
Investments, Inc.” and began trading under this name on September
1, 2011. The Company’s ticker symbol on the New York Stock Exchange
remains “CYS.”
About CYS Investments, Inc.
CYS Investments, Inc. is a specialty finance company that
invests on a leveraged basis in residential mortgage pass-through
securities for which the principal and interest payments are
guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. CYS
Investments, Inc. has elected to be taxed as a real estate
investment trust for federal income tax purposes.
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