Dallas, Texas 10/07/2013 (Financialstrend) – Newcastle Investment Corp. (NYSE:NCT) announced on October 3 that it has commenced to put into action, steps which are required of it as a sponsor of “GateHouse revamp plan”. The steps include Newcastle or any of its designated subsidiaries offering to buy the debt obligations of Gatehouse (which commenced voluntary Chapter 11 proceedings on September 27). Total debt that GateHouse is obligated too includes $1.1 billion of principal and interest due over the past many months on the principal amount.
Readers should know that on September 10, Newcastle had signed off on a restricting agreement with the troubled GateHouse Media as it implements the court approved reorganization. As a consequence to that GateHouse commenced voluntary bankruptcy proceedings in the United States Bankruptcy Court in the District of Delaware on September 27.
As part of the package, Newcastle will transfer the entire 100% of the stock of Local Media Group Holdings LLC to a newly created entity christened “New Media Investment Group Inc”. Local Media was bought over by Newcastle on September 3, 2013. This new entity will act as a holding company, and will have complete operational control of the refurbished GateHouse after completion of its Chapter 11 proceedings.
Newcastle is a $1.44 billion market cap company. It has a sales turnover of close to $328 million over the past 12 months and a net income of $387 million. The stock has a total of 259 million shares outstanding with institutions owning 57.5% of the stock. Over the past 12 months, the company has paid out a dividend of $0.4 per share translating to a forward yield of 7.21%. As of close of business on October 3, the stock was trading at $5.55 per share up 0.54% in comparison to its previous day close. The stock has lost close to 1.94% in the past 30 days.