ARLINGTON, Va., May 16, 2016 /PRNewswire/ -- Arlington Asset
Investment Corp. (NYSE: AI) (the "Company" or "Arlington") today announced that it has filed
an investor presentation with the Securities and Exchange
Commission ("SEC") in connection with the Company's 2016 Annual
Meeting of Shareholders to be held on June
9, 2016. The presentation is available on the Company's
website at www.arlingtonasset.com and on the SEC's website at
www.sec.gov.
The Company's presentation highlights actions that Arlington's Board of Directors and management
team have taken over the past several years to enhance shareholder
value and warns shareholders of the potential value destruction
that would occur if the Imation Corp. (NYSE: IMN) and Clinton
Group, Inc. (collectively, the "Imation Group") nominees are
elected to the Board of Directors. Specifically, the presentation
outlines:
- Arlington's consistently
communicated investment strategy has driven robust dividends and
value to shareholders.
- The Company's interest rate hedging strategy enables
Arlington to generate consistent
spread income from its investment portfolio to support its strong
dividends to shareholders.
- Since beginning its current investment strategy, the Company
has delivered 25 consecutive quarters of dividends,
distributing a total of $19.40 per
share.
- Arlington's director
nominees offer the right balance of experience, skills and
diversity of perspectives to provide expert and independent
oversight of Arlington's business
and strategy.
- Highly Experienced Board. Each of Arlington's director nominees has relevant
industry experience, including a deep understanding of the
residential mortgage investment industry.
- The Company's Board includes proven professionals and leaders
with integrity and backgrounds in real estate, specialty finance,
asset and investment management, and investment banking.
- An Independent Board. Six of our eight Board members are
independent.
- Proactive Practice of Adding New Board Members. The
Company's Board provides a balance of experience and seeks fresh
perspectives, with 50% of the independent directors new in the last
five years, a new CEO appointed in 2014 and a new CFO appointed in
2015.
- A Board focused ONLY on Shareholders. None of our
independent directors have any other business relationships or
deals with Arlington. They are
fiduciaries for all Arlington
shareholders.
- Based on Imation Group's track record of self-dealing
transactions and value destruction, Arlington believes that the Imation Group has
nominated this controlling slate to extract value from Arlington at the expense of all other
shareholders.
- The Imation Group's hasty, less than 0.05% investment in
Arlington and complete failure to
approach Arlington prior to
nominating its slate are evidence of its self-serving intent;
Imation and Clinton held Arlington
shares for only a few days before seeking
control.
- Since it won its proxy contest on May
20, 2015, the Clinton Group has only destroyed shareholder
value at Imation; Imation's stock has lost approximately 65% of
its value and Imation has delivered NO dividends.
- Meanwhile, since August 2015, the
Imation Board, comprised solely of Clinton nominees and directors
chosen and elected by the Clinton nominees, has engaged in
self-dealing transactions involving more than $50 million1. These deals include
millions of dollars in consulting deals for directors and officers
of Imation, and a $35 million
investment deal for Clinton Group with a 25% quarterly performance
fee.
- These deals represent more than 80% of the market
capitalization of Imation today.
- Imation paid the consulting firm founded and led by one of the
Clinton-nominated Imation directors $5.1
million in only eight months. And Imation wants to put
this person on the Arlington
Board!
- In its latest quarter, Imation disclosed $91 million in losses and a tangible book value
of less than $2 million. Imation's
independent auditor has declined to stand for re-election.
- Imation has no relevant industry experience – it is an IT
data storage business. Barely one week ago, Imation announced a
completely new strategy alongside its technology business – "We
have started our investment and activist initiatives outside of
Imation's core business areas, and we are fully engaged in
executing our long-term strategy: helping investors in struggling
businesses improve their returns." We think Imation's shareholders
would prefer Imation to deploy its capital to improve Imation's own
struggling, loss-making business!
- Clinton Group is a hedge fund with a history of value
destruction at Imation and multiple other companies. Owning
only 1,000 shares of Arlington stock, a less than $15,000 investment and less than 0.005% of
Arlington's shares, the Clinton
Group has no alignment with our shareholders yet along with Imation
seeks control of Arlington's
Board, and of Arlington management
as well. Arlington's current
directors and officers own more than 60 times the amount of
Arlington stock owned collectively
by Imation and Clinton.
- The Imation Group has disclosed plans for Arlington that are frighteningly familiar to
its self-serving and value destroying agenda at Imation and that we
believe put Arlington's dividend
and capital at significant risk, including:
- Taking control of Arlington's
Board, management and capital;
- Terminating management; and
- Turning Arlington into an
externally managed hedge fund business, probably by Imation itself
and/or the Clinton Group.
The Arlington Board is
committed to driving value at Arlington, including delivering a stable,
robust dividend to ALL Arlington shareholders. The Company urges
shareholders to protect the value of their investment and vote
FOR ALL the Arlington
Board's experienced and highly qualified director nominees on the
WHITE proxy card.
Your Vote Is
Important, No Matter How Many or How Few Shares You
Own
If you have any
questions or need assistance voting, please contact the firm
assisting Arlington in the solicitation of proxies:
INNISFREE M&A
INCORPORATED
Shareholders may
call toll free: 1-888-750-5834
Banks and Brokers
may call collect: 212-750-5833
IMPORTANT
We urge you NOT to
sign any gold proxy card sent to you by the Imation
Group.
If you have already
done so, you have every legal right to change your vote by using
the enclosed WHITE proxy card to vote TODAY—by telephone, via
Internet, or by signing, dating and returning the WHITE proxy card
in the postage paid envelope provided.
|
About Arlington Asset Investment Corp.
Arlington Asset Investment Corp. (NYSE: AI) is a principal
investment firm that currently invests primarily in
mortgage-related and other assets. The Company is headquartered in
the Washington, D.C. metropolitan
area. For more information, please visit
www.arlingtonasset.com.
Important Additional Information
The Company, its directors and certain of its executive officers
are participants in the solicitation of proxies in connection with
the Company's 2016 Annual Meeting of Shareholders. The Company has
filed a definitive proxy statement and form of WHITE proxy card
with the U.S. Securities and Exchange Commission (the "SEC") in
connection with such solicitation of proxies from the Company's
shareholders. WE URGE INVESTORS TO READ THE DEFINITIVE
PROXY STATEMENT (INCLUDING ANY AMENDMENTS AND SUPPLEMENTS THERETO)
AND ACCOMPANYING WHITE PROXY CARD CAREFULLY AND IN THEIR ENTIRETY
BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
Information regarding the names of the Company's directors and
executive officers and their respective interests in the Company by
security holdings or otherwise as of April
7, 2016, is set forth in the Company's definitive proxy
statement for its 2016 Annual Meeting of Shareholders, filed with
the SEC on April 18, 2016. Additional
information can be found in the Company's Annual Report on Form
10-K for the year ended December 31,
2015, filed with the SEC on February
16, 2016. These documents are available free of charge at
the SEC's website at www.sec.gov. Shareholders are able to obtain,
free of charge, copies of these documents, including any proxy
statement (and amendments or supplements thereto) and accompanying
WHITE proxy card, and other documents filed with the SEC at the
SEC's website at www.sec.gov. In addition, copies are also
available at no charge at the Investors section of the Company's
website at http://www.arlingtonasset.com/.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Certain statements in this news release that are not historical
facts are forward-looking statements. Forward-looking statements
involve various important assumptions, risks and uncertainties.
Actual results may differ materially from those predicted by the
forward-looking statements because of various factors and possible
events. We discuss these factors and events, along with certain
other risks, uncertainties and assumptions, under the heading "Risk
Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2015, and in our other
filings with the SEC. We note these factors for investors as
contemplated by the Private Securities Litigation Reform Act of
1995. Predicting or identifying all such risk factors is
impossible. Consequently, investors should not consider any such
list to be a complete set of all potential risks and uncertainties.
Forward-looking statements speak only as of the date on which they
are made, and we undertake no obligation to update any
forward-looking statement to reflect circumstances or events that
occur after the date of the statement to reflect unanticipated
events. All subsequent written and oral forward-looking statements
attributable to us or any person acting on behalf of the Company
are qualified by the cautionary statements in this section.
1 Imation SEC filings.
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SOURCE Arlington Asset Investment Corp.