Newcastle Investment Corp. (NYSE:NCT) – Acquisition and Restructuring Plan


Dallas, Texas 09/10/2013 (Financialstrend) – Newcastle Investment Corp. (NYSE:NCT) is U.S. based real estate investment trust and Finance Company which focuses on investing in and managing the portfolio of real estate securities. The company primarily makes investment in Real Estate and Other Debt and Senior Housing and other real estate related assets. For federal income tax purposes, the company is eligible to fall in the category of real estate investment trust; therefore generally it would not be liable to pay any federal corporate income taxes with the condition that it should distribute at least 90% of its income to its shareholders.

On September 4, 2013 the company announced that today it has completed the acquisition of Dow Jones Local Media Group (“Local Media Group”) from News Corp. according to the news the deal gets competed for an amount of $87 million for which the company makes equity investment of $54 million which includes transaction expenses and the remainder amount of $33 million is financed by debt.

Wesley R. Edens who is the Chairman of the company mentioned that the company is focusing on the successful transition of the legacy mortgage business into the senior housing business. The company posted on the website that they have made two investments in two high income generating media companies that will be combined and turned into the new company called New Media.

Firstly, the company will buy 33 local newspapers from them for the sum of $82 million and secondly, the company has had an investment in the debt of a local media company called GateHouse. The company has approximately 52% of GateHouse’s $1.2 billion of debt. Though the company is not in bankruptcy it is over leveraged. Originally, NCT bought that company many years ago and now it made an agreement with other debt holders to effectively convert the debt of that company into equity.