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Newcastle Investment Corp. (NYSE: NCT) (the “Company”) announced today that it has completed the sale of 20,000,000 shares of its common stock at a public offering price of $6.71 per share. In addition, the underwriters today exercised in full their option to purchase 3,000,000 additional shares of the Company’s common stock, which is expected to close on May 24, 2012. After giving effect to the exercise of the option, the total gross proceeds from the sale amount to approximately $154.3 million.
All of the shares were offered by the Company and were issued under the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission.
The Company intends to use the net proceeds from this offering for general corporate purposes, which may include, but not be limited to, investments in excess mortgage servicing rights, the repurchase of indebtedness issued by its collateralized debt obligations, as well as investments in real estate securities and/or other real estate related assets, including senior living facilities.
Credit Suisse Securities (USA) LLC, Citigroup, and Deutsche Bank Securities Inc. served as the joint book-running managers for the offering. Keefe, Bruyette & Woods, Inc. served as co-manager for the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The Company invests in real estate debt and other real estate related assets, including excess mortgage servicing rights. The Company is organized and 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.