CIFCCorp. announced today a definitive agreement pursuant to which Columbus Nova, one of the company's largest current shareholders, will acquire a controlling interest in the CIFC.
Columbus Nova, a New York-based multi-strategy investment firm, has committed to purchase, in a private transaction, an additional 9,090,909 shares of outstanding common stock of CIFC at $9.00 per share from CIFC Parent Holdings LLC, which is controlled by funds managed by Charlesbank Capital Partners. Following the Transaction, Columbus Nova will own approximately 71% of the CIFC's outstanding shares, assuming conversion of the notes held by Columbus Nova that are convertible into approximately 4.1 million additional shares.
The Transaction is expected to close before year end and is subject to customary closing conditions.
Commenting on the transaction, Andrew Intrater, Chief Executive Officer of Columbus Nova, stated, "We have been a significant shareholder in the Company and continue to be excited about the business. CIFC has successfully begun its transformation from a monoline CLO issuer to a multi-line private debt manager. In each of the last two years, CIFC has performed at the top of its peer groupin terms of AUM growth in its core business and now has over $12 billion incorporate loan-based AUM. We remain dedicated to supporting the entire CIFC teamand are confident that the Company will continue on its strong growth path."
In connection with the Transaction, Peter Gleysteen, the Company's Founder, President and Chief Executive Officer, has entered into a multi-year contract to serve as Vice Chairman of the Company's Board of Directors, and will be actively involved in managing certain of the Company's legacy collateralized loan obligations. Mr. Gleysteen will continue to serve as the President and Chief Executive Officer of CIFC until the completion of the succession process led by CIFC's Board of Directors. In addition, CIFC's long-standing management committee, whose management members are Stephen Vaccaro, the Company's Chief Investment Officer, Oliver Wriedt, the Company's Head of Capital Markets & Distribution, and Mr. Gleysteen, will continue to guide the Company's business.
Latham & Watkins LLP served as legal advisor to Columbus Nova. Goodwin Procter LLP served as legal advisor to CIFC Parent.
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