Deerfield Capital Corp. Announces Reduction In Occupancy Expense
CHICAGO, Dec. 3 /PRNewswire-FirstCall/ -- Deerfield Capital Corp. (NYSE Amex: DFR) ("DFR" or the "Company") today announced the successful completion of a plan to significantly reduce the Company's occupancy expense. Under a lease amendment signed on November 27, 2009, the Company expects to vacate the 69,000 square feet it presently occupies under a lease expiring in 2021 and consolidate operations into approximately 25,000 square feet located in the same building by May 2010. As a result of the amendment, the Company projects that its annual occupancy expense will decline by approximately $1.3 million.
Commenting on the amendment, Jonathan Trutter, Chief Executive Officer, said, "This amendment represents a unique opportunity for us to move into nearby space that will leave us room to grow while saving nearly $1.3 million a year. The substantial reduction in annual rent expense and relief from other obligations under the lease represented a compelling value for the Company and its shareholders."
The amendment provides for a $1.8 million reduction in the amount of the letter of credit that the Company is required to maintain upon the satisfaction of certain conditions. A portion of the $1.8 million will be used to fund expenditures related to relocating the Company's offices, and the balance will be available for investment in the growth of the Company. The move will result in a non-cash acceleration of depreciation and amortization expense from certain leasehold improvements and fixed assets as a result of a shorter estimated life. The Company also expects to achieve additional savings from lower operating, insurance and maintenance costs associated with the new smaller space.
About the CompanyDFR, through its subsidiary, Deerfield Capital Management LLC, manages client assets, including bank loans and other corporate debt, residential mortgage backed securities, government securities and asset-backed securities. In addition, DFR has a principal investing portfolio comprised of fixed income investments, including bank loans and other corporate debt and residential mortgage backed securities.
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