Newcastle Announces Sale of Manufactured Housing Portfolio
May 12 2014 - 9:20PM
Business Wire
Newcastle Investment Corp. (“Newcastle” or the “Company,”
NYSE:NCT) announced today that it has completed the sale of its
manufactured housing portfolio. The portfolio had a face amount of
$222 million and was sold at a price of 104% of par, or $231
million of proceeds.
Part of the proceeds from the sale will be used to pay off the
current debt on the portfolio at par, including $132 million of
third-party debt and $20 million of debt owned by CDO VIII and CDO
IX.
The sale resulted in total proceeds to Newcastle of $85 million.
Newcastle received $79 million of proceeds relating to its equity
investment in the portfolio and $6 million of net proceeds through
its ownership in the senior class of CDO VIII.
Newcastle’s cost basis in the portfolio was 93% of par. The sale
will generate a gain of approximately $20 million in the second
quarter of 2014 after deal expenses and unamortized discount on
third-party debt.
ABOUT NEWCASTLE
The Company focuses on investing in, and actively managing, real
estate related assets and primarily invests in: (1) Senior Housing
Assets (2) Real Estate Debt and (3) Golf & Other Investments.
The Company conducts its operations to qualify as a real estate
investment trust ("REIT") for federal income tax purposes. The
Company is managed by an affiliate of Fortress Investment Group
LLC, a global investment management firm.
FORWARD-LOOKING STATEMENTS
Certain items in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and beliefs and are
subject to a number of trends and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements, many of which are beyond our control.
The Company can give no assurance that its expectations will be
attained. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release. For a
discussion of some of the risks and important factors that could
cause actual results to differ from such forward-looking
statements, see the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operation” in the Company’s most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q. Furthermore, new risks
and uncertainties emerge from time to time, and it is not possible
for the Company to predict or assess the impact of every factor
that may cause its actual results to differ from those contained in
any forward-looking statements. Such forward-looking statements
speak only as of the date of this press release. The Company
expressly disclaims any obligation to release publicly any updates
or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
Newcastle Investment Corp.Investor Relations212-479-3195
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