Announcements > 03/23/2010. Deerfield Capital Corp. announces important strategic transaction with Columbus Nova

CHICAGO, March 23, 2010 /PRNewswire via COMTEX/ -- Deerfield Capital Corp. (Nasdaq: DFR) ("DFR" or the "Company") today announced a definitive agreement to acquire Columbus Nova Credit Investment Management, LLC ("CNCIM"), a Charlotte-based investment manager specializing in leveraged loan credit products with $1.8 billion of assets under management ("AUM") from Bounty Investments, LLC ("Bounty") an investment vehicle managed by Renova U.S. Management LLC ("Columbus Nova"), a New York-based investment management firm, for $25.0 million of stock (at an implied price per share of $5.50) (the "Stock Consideration") and deferred payments totaling $7.5 million of cash payable over five years. Additionally, Bounty has agreed to purchase $25.0 million in principal amount of senior subordinated convertible notes ("Convertible Notes") issued by the Company. The proceeds from the Convertible Notes, along with DFR cash, will be used to repurchase and retire all of the $73.9 million in principal amount of the outstanding Series A and Series B Senior Secured Notes ("Senior Notes") for a total purchase price of $55.0 million plus accrued interest. The transactions, which are subject to closing conditions including stockholders approval, are expected to close during the second quarter of 2010.

More information is available here