Mount Logan Capital Inc.Announces Acquisition of $ 662
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All figures in United States dollars, unless otherwise specified.
TORONTO, Nov 12, 2020 (GLOBE NEWSWIRE) – Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan“or the”Society“) is pleased to announce that Mount Logan Management, LLC (“ML management“), a wholly owned subsidiary of the Company, under an asset purchase agreement entered into on August 21, 2020 (the”CLO Agreement“), completed its acquisition from Garrison Investment Management LLC (“GIM“) and other vendors (collectively with GIM,”Sellers“) the rights of GIM under certain investment management agreements, the partnership interests of a GIM affiliate under certain partnership agreements, the rights of certain vendors under certain management agreements of guarantees relating to Garrison Funding 2018-1 LP (“CLO 2018“) And Garrison MML CLO 2019-1 LP (“CLO 2019“And with the CLO 2018, the”CLO“) and the rights of certain Sellers under certain cover letters, for a purchase price of $ 3.0 million (the”Garrison Transaction“). A CLO, or secured loan bond, is a portfolio of senior secured loans securitized into tranches of debt and equity. As of June 30, 2020, CLO 2018 and CLO 2019 respectively held approximately $ 330 million and $ 332 million in assets under management (unaudited).
Ted Goldthorpe, CEO and Chairman of Mount Logan, said, “Registration of ML Management with the United States Securities and Exchange Commission opens many doors for potential asset management activities for new US clients, the first being the management of Garrison’s CLO platform. . Secured Loan Bonds are becoming a larger share of global debt markets each year and represent a significant market opportunity for Mount Logan. As part of this transaction, Mount Logan gained nearly $ 700 million in assets under management, which is another step towards accelerating the Company’s transition to a lean business model.
On November 6, 2020, ML Management’s registration as an investment advisor was granted by the United States Securities and Exchange Commission (“SECOND”) Under Section 203 (c) of the Investment Advisers Act 1940, as amended. ML Management is now registered to act in an investment advisory role for US clients. With respect to the CLO agreement, ML Management has become the investment manager of the CLOs and is entitled to receive annual management fees of 0.50% to 0.60% of total gross assets, paid quarterly. and subject to reductions based on caps, transaction fees, and cost-sharing agreements.
About Mont Logan Capital Inc.
Mount Logan Capital Inc. is an alternative asset management firm that focuses on public and private debt securities in the North American market. The Company seeks to actively find and manage loans and other debt securities with credit-oriented characteristics. The Company actively seeks, appraises, underwrites, monitors and invests primarily in loans, debt securities and other credit-oriented instruments that present attractive risk-adjusted returns and present a low risk of capital depreciation throughout. of the credit cycle.
This press release contains forward-looking statements and information within the meaning of applicable securities laws (collectively hereinafter referred to as “forward-looking statements“). Forward-looking statements may be identified by the expressions “seeks”, “expects”, “believes”, “believes”, “will”, “target” and similar expressions. Forward-looking statements are not historical facts, but reflect the current expectations of the Company’s management regarding future results or events and are based on information currently available to it. Certain important factors and assumptions have been applied in providing these forward-looking statements. The forward-looking statements discussed in this press release may include, without limitation, statements regarding the potential benefits of registering ML Management with the SEC; statements regarding the growth of the secured loan bond industry and the Company’s ability to take advantage of market opportunities presented thus; statements relating to the Company’s transition to an asset-less business model; and statements relating to the affairs and future activities of the Company. All forward-looking statements contained in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in the forward-looking statements are reasonable based on the information available at the time such information was given; however, the Company cannot guarantee that actual results or developments will be achieved on certain specified dates or not at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the secured loan industry may not grow and develop as expected by the company, the company may not be able to take advantage of the growth of the secured lending industry, the company has a limited operating history in terms of concerns a lean business model as good as the matters discussed under the heading “Risk Factors” of the last filed annual information form and of the Management’s Discussion and Analysis of the Company. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, a forward-looking statement is only valid as of the date on which such statement is made. The Company assumes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances, except as required by securities laws. The forward-looking statements contained in this press release are made as of the date of this press release.
This Press release is not, and should in no way be interpreted as, a prospectus or an advertisement, and the communication of this Press release is not, and should under no circumstances be construed as, an offer to sell or a solicitation of an offer to buy securities of the Company. This Press release is not intended for U.S. people. The shares of the Company are not and will not be registered under the name U.S. Securities Act of 1933 and the Company is not and will not be registered under the U.S. Investment Companies Act 1940 (the “1940 law “). U.S. persons are not authorized to purchase shares of the Company in the absence of an applicable exemption from registration under each of these laws. In addition, the number of investors in the United States, or who are American ppersons or purchasing on behalf of or for the benefit of US ppersons, will be limited to the number required to comply with an available exemption from the registration requirements of the 1940 Act.
For more information, please contact:
Ted Gilpin, Chief Financial Officer