NEW YORK, Sept. 24, 2012 /PRNewswire/ -- CIFC Corp. (NASDAQ: DFR) ("CIFC") entered into a 5 year strategic relationship with GE Capital's Bank Loan business, pursuant to which:
- A commercial council comprised of senior members of both GE Capital and CIFC was formed and will meet regularly to assist in the exploration of business opportunities between the two firms, and to facilitate third party investment advisory referrals. Peter Gleysteen, Chief Executive Officer of CIFC, and Neeraj Mehta, a GE Officer, are slated to serve as co-chairs of the commercial council.
- GE Capital Debt Advisors LLC, a wholly-owned indirect subsidiary of GE Capital, is exiting its third party investment advisory business, and assigned its role as manager of four "Navigator" collateralized loan obligation funds representing approximately $700 million in AUM to CIFC Asset Management LLC, a wholly-owned subsidiary of CIFC.
- GE Capital received 1 million shares of CIFC common stock, warrants to purchase two million shares of a newly created class of CIFC non-voting, convertible preferred stock, and $4.88 million in cash less certain accrued amounts from CIFC;
- GE Capital has the right to appoint a director to CIFC's Board of Directors.
CIFC's Peter Gleysteen said: "We are excited to have finalized this strategic alliance and to officially start pursuing new opportunities the combination presents to us, including new investments for investors. Partnering with GE Capital uniquely positions CIFC at the intersection of GE Capital's business as a leading corporate lender and our loan asset management platform."
GE Capital's Neeraj Mehta stated: "We are excited to now be a meaningful shareholder in CIFC and look forward to working together."Berkshire Capital Securities advised CIFC in the transaction.