Newcastle Investment Corp. (NYSE: NCT) announced today that on June 12, 2012, it completed the first closing of its co-investment with Nationstar Mortgage LLC related to their acquisition of mortgage servicing rights (“MSRs”) from Aurora Bank FSB, a subsidiary of Lehman Brothers Bancorp Inc. The first closing relates to MSRs on two government-sponsored enterprise (“GSE”) loan pools with an unpaid principal balance of $16.1 billion. Newcastle is acquiring the right to receive 65% of the monthly cash flow generated by the MSRs, net of a base fee paid to Nationstar. Newcastle will not own the servicing rights and therefore will not have any servicing duties, advance obligations or liabilities associated with the portfolio. As previously disclosed, the closing of the investment in the remaining MSRs on the private label pools, is expected to occur on or about June 26, 2012, and we plan to post a presentation on our website outlining the entire Aurora investment at that time.
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. For more information regarding Newcastle Investment Corp. or to be added to our e-mail distribution list, please visit www.newcastleinv.com.
FORWARD LOOKING STATEMENTSCertain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to statements regarding the closing of investments. 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. 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 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 Annual Report on Form 10-K or Quarterly Report on Form 10-Q, which is available on the Company's website ( http://www.newcastleinv.com). Such forward-looking statements speak only as of the date of this press release. Newcastle 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.
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