Newcastle Investment tenders for three series of its preferred stock

By Jennifer Chiou

New York, Nov. 18 - Newcastle Investment Corp. announced the start of a cash tender offer for up to 2 million shares of its 9¾% series B cumulative redeemable preferred stock, up to 1.1 million shares of its 8.05% series C cumulative redeemable preferred stock and up to 1.5 million shares of its 8 3/8% series D cumulative redeemable preferred stock.

The offer is set to end at midnight ET on Dec. 17.

The company said it will pay a purchase price of $4.75 for each preferred plus accumulated dividends, resulting in a total per-share payment of $7.53 for the 9¾% preferreds, $7.05 for the 8.05% preferreds and $7.14 for the 8 3/8% preferreds.

The payment date is slated for Dec. 22.

If the company receives tenders in excess of the cap amounts, it will accept the preferreds on a pro rate basis.

Newcastle said it must receive tenders for a total of at least 2,135,000 preferreds.

UBS Investment Bank is the dealer manager (888 719-4210). D.F. King & Co., Inc. is the information agent (800 488-8075).

Newcastle is a New York-based real estate investment and finance company.

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