Silver Bay Realty Trust Corp. (NYSE: SBY) (“Silver Bay” or the “Company”), announced today that it is engaged in advanced discussions with Pine River Domestic Management L.P. (“Pine River”) and Provident Real Estate Advisors LLC (“Provident”), the owners of Silver Bay’s external manager, PRCM Real Estate Advisers LLC (“Manager”), on a transaction to internalize the management of the Company. As currently contemplated, Silver Bay expects such a transaction would involve Silver Bay’s acquisition of the Manager in exchange for common stock in Silver Bay or common units in Silver Bay’s operating partnership subsidiary. Following such a transaction, Silver Bay would own all material assets and intellectual property rights of the Manager currently used in the conduct of its business and would be managed by officers and employees who currently work for the Manager and who would become employees of Silver Bay or a subsidiary thereof as a result of the internalization. A special committee of the Company’s Board of Directors consisting of its independent directors is negotiating the potential transaction on behalf of the Company, and has retained independent legal and financial advisors. The potential transaction remains subject to final agreement, definitive documentation and approval of the Company’s stockholders, among other matters. There is no assurance that the parties will reach a definitive agreement or that the stockholders will approve the transaction. Silver Bay Realty Trust Corp. Silver Bay Realty Trust Corp. is a Maryland corporation focused on the acquisition, renovation, leasing and management of single-family properties for rental income and long-term capital appreciation. Silver Bay owns single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio and Texas. Silver Bay has elected to be taxed as a REIT for U.S. federal tax purposes. Additional information can also be found on the company’s website: www.silverbayrealtytrustcorp.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the likelihood and timing of the potential internalization transaction and involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Factors that could cause actual results to differ include: failure of the parties to reach agreement on definitive terms; failure to obtain shareholder approval of the transaction; and failure to successfully manage integration of the Manager into the Company.
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Silver Bay does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these and other risk factors is contained in Silver Bay’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning Silver Bay or matters attributable to Silver Bay or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.Additional Information Stockholders of Silver Bay, and other interested persons, may find additional information regarding Silver Bay at the SEC's Internet site at www.sec.gov or by directing requests to: Silver Bay Realty Trust Corp., Attn: Investor Relations, 601 Carlson Parkway, Suite 250, Minnetonka, MN 55305, telephone (952) 358-4400.