Newcastle Investment Corp. (NYSE: NCT) announced on 10/16 that its Board of Directors has approved the details and timing of the spin-off of its senior living business. The spin-off will establish the senior living business as an independent, publicly traded real estate investment trust called New Senior Investment Group Inc. (SNR).
The spin-off will be effected as a distribution of all of the outstanding shares of common stock of New Senior, which is currently wholly owned by Newcastle, to the holders of Newcastle common stock as of the record date. The distribution will occur on November 6, 2014, subject to the conditions noted below, and the record date is October 27, 2014.
In connection with the spin-off, Newcastle’s Board of Directors has approved a 1-for-2 reverse stock split of the outstanding shares of Newcastle’s common stock, and the distribution ratio for the spin-off will be based on the number of Newcastle shares outstanding after the reverse stock split. Newcastle will then distribute one share of New Senior common stock for each outstanding share of Newcastle common stock. The value of any fractional shares resulting from the reverse stock split will be paid out in cash. Source: Press Release
