NEW YORK, April 2, 2015 /PRNewswire/ -- Clinton Group,
Inc. ("Clinton" or "CGI"), a stockholder of Campus Crest
Communities, Inc. ("Campus Crest", "CCG" or the "Company") (NYSE:
CCG), and Campus Evolution Villages, LLC ("Campus Evolution
Villages" or "CEV" and together with CGI, the "Clinton/Campus
Evolution Group"), a leading private owner and operator of student
housing assets, sent an open letter to the stockholders of Campus
Crest.
"We maintain our belief that student housing is a unique asset
class that requires very hands on management and expertise.
We have assembled a very attractive portfolio of assets and have
driven bottom line performance for our investors by managing day to
day and dollar by dollar. We believe bringing the same
management philosophy to Campus Crest will enable us to right the
ship and create shareholder value," stated Andrew Stark, CEO of Campus Evolution
Villages.
"The dividend cut is disappointing especially in light of the
Board's ongoing process to sell the Company. However, I
believe our proposal to remain independent with what we view as a
better aligned Board and superior management provides a credible
alternative to a change of control at a premium to NAV. We
look forward to letting the shareholders decide their preferred
path," added Joseph A. De Perio,
Senior Portfolio Manager at Clinton Group.
A copy of the letter is included in the release.
About Clinton Group, Inc.
Clinton Group, Inc. is a diversified asset management firm that
is a Registered Investment Advisor. The firm has been investing in
global markets since its inception in 1991 with expertise that
spans a wide range of investment styles and asset classes.
About Campus Evolution Villages, LLC
Campus Evolution Villages is a singularly focused student
housing management company; a thought leader and change agent
setting a new standard in student living that goes beyond merely
heads in beds. Its senior management team has more than 25 years of
experience in serving the student demographic. Campus Evolution
Villages' specialized focus and customer-centric approach gives it
a unique perspective on the particular needs and challenges of
managing student housing. Campus Evolution Villages owns and/or
manages approximately 10,000 beds today at 20 universities from
San Diego, California to
Clemson, South Carolina.
CEV and its principals have a proven track-record in student
housing, commercial and residential real estate finance and
development, and in growing successful operating real estate
platforms, which gives it a unique insight into the nuances of
student housing. The principals of CEV are seasoned leaders with
turn-around and growth experience at both the corporate and asset
level and also with significant exposure to the capital markets,
including public company and shareholder know-how. CEV has
wide-ranging student housing management experience and strong
relationships with owners, universities and other institutions.
Top-down leadership and brand building, with culture immersion and
training, has separated CEV from its peers; CEV understands that
student housing is a management-intensive operating business
requiring a cohesive team at all touch-points focused on the
experiential nature of student housing.
CLINTON RELATIONAL OPPORTUNITY MASTER FUND, L.P., CLINTON
RELATIONAL OPPORTUNITY, LLC, CLINTON GROUP, INC. AND GEORGE E. HALL (COLLECTIVELY, "CLINTON"),
SCOTT R. ARNOLD, RANDALL H. BROWN, WILLIAM A. FINELLI AND RAYMOND
MIKULICH (THE "NOMINEES") AND CAMPUS EVOLUTION VILLAGES, LLC, EVAN
DENNER AND ANDREW STARK (TOGETHER WITH CLINTON AND THE NOMINEES,
THE "PARTICIPANTS") INTEND TO FILE 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 STOCKHOLDERS OF
CAMPUS CREST COMMUNITIES, INC. (THE "COMPANY") FOR USE AT THE
COMPANY'S 2015 ANNUAL MEETING OF STOCKHOLDERS (THE "PROXY
SOLICITATION"). ALL STOCKHOLDERS OF THE COMPANY ARE ADVISED TO READ
THE DEFINITIVE PROXY STATEMENT AND OTHER DOCUMENTS RELATED TO THE
PROXY SOLICITATION, WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION
RELATED TO THE PARTICIPANTS. WHEN COMPLETED, THE DEFINITIVE PROXY
STATEMENT AND AN ACCOMPANYING PROXY CARD WILL BE FURNISHED TO SOME
OR ALL OF THE COMPANY'S STOCKHOLDERS AND WILL BE, 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 PRELIMINARY PROXY STATEMENT ON SCHEDULE 14A FILED BY CLINTON
WITH THE SEC ON FEBRUARY 23, 2015.
THIS DOCUMENT CAN BE OBTAINED FREE OF CHARGE FROM THE SOURCE
INDICATED ABOVE.
April 2, 2015
To Our Fellow Stockholders of Campus Crest:
We are investors alongside you in Campus Crest Communities, Inc.
("Campus Crest" or the "Company") and have partnered with Campus
Evolution Villages, LLC ("Campus Evolution") (together, "we" or our
"Group") in our quest to improve the Company.
We believe you share our astonishment over yesterday's
announcement about the dividend cut. In our conversations
with Mr. Kahlbaugh and Mr. Halfacre in December, after our
nomination notice was made public, we had urged the Board to do the
right thing and appropriately size the dividend and prevent a
future reduction.
The consensus estimate of NAV per share as of today from the six
research analysts covering the Company is $7.40 per share, a 15% premium to yesterday's
closing stock price. Reviewing the Company's Form 2014 10-K,
we believe, furthers our view that the Company is in desperate need
of qualified student housing management. We continue to
believe that our group would provide a total solution for Campus
Crest: bringing student housing expertise and relationships, an
operating strategy, potential financing, if needed, and an
attractive forward pipeline of assets for the Company to
acquire.
We believe there are two paths forward here. The Company
can continue a sale process which we believe should garner between
$8.50 and $9.50 per share, or a
32-48% premium to yesterday's closing stock price.
Alternatively, shareholders can elect to take our path and install
the management team of Campus Evolution. While we believe
that the stock would be worth more than $10.00 a share in a year under a newly
constituted Board of Directors, a refreshed executive team with
Campus Evolution management team at the helm, the adoption of their
operating strategy, and the re-installment of the dividend, we
continue to pledge we will not stand in the way of a change of
control transaction acceptable to our fellow shareholders.
We look forward to soliciting your vote next month and can be
reached at (212) 825-0400 or at evolvecampuscrest@clinton.com.
Thank you for your consideration,
Joseph A. De Perio
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SOURCE Clinton Group, Inc.