NEW YORK--(BUSINESS WIRE)--
Tiptree Inc. (NASDAQ:TIPT) (“Tiptree”),announced today that it
has completed the previously announced sale of its subsidiary Care
Investment Trust, LLC to Invesque Inc. (TSX: HLP.U). Tiptree and its
subsidiaries received 16.65 million shares as consideration.
Transformative and Strategic Transaction:
- Attractive Investment: The combined platform has greater scale
and more diversification. We expect this will lead to better access to
capital markets and will position Invesque for future growth.
- Validation of Embedded Value: Tiptree’s gain on sale was
approximately $0.98 per share, or a 10% increase to our September 30,
2017 book value per share, as exchanged. Upon the expiration of
lock-up restrictions, Tiptree expects further accretion in future
quarters to occur.
- Accretive Transaction: The transaction is expected to be
accretive to Tiptree’s 2018 Adjusted EBITDA and GAAP earnings per
share. The combination of expected dividends, elimination of GAAP
depreciation on Tiptree’s financials, and reductions in corporate
overhead should result in improved metrics.
- Reduced leverage: Through this transaction, along with other
pending or closed sales in 2017, Tiptree’s debt was reduced by
approximately $495 million. After giving effect to these transactions,
the Company’s leverage was reduced from 2.2x to less than 1.0x.
About Tiptree
Tiptree Inc. (NASDAQ: TIPT) is a holding company that combines a
specialty insurance platform with investment management expertise. The
Company’s principal operating subsidiary is a leading provider of
specialty insurance underwriting products and services. The Company also
allocates its capital across private operations and investments which we
refer to as Tiptree Capital. Today, Tiptree Capital consists of asset
management operations, mortgage operations and other investments. For
more information, please visit www.tiptreeinc.com.
About Invesque
Invesque Inc. is a North American health care real estate company with a
growing portfolio of high quality properties located in the United
States and Canada and operated by best-in-class senior living and care
operators primarily under long-term leases and joint ventures.
Invesque's mission is to create long-term shareholder value while
providing an investment opportunity that matters. For more information,
visit www.invesque.com.
Forward-Looking Statements
This release contains “forward-looking statements” which involve risks,
uncertainties and contingencies, many of which are beyond the Company’s
control, which may cause actual results, performance, or achievements to
differ materially from anticipated results, performance, or
achievements. All statements contained in this release that are not
clearly historical in nature are forward-looking, and the words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,”
“plan,” “project,” “should,” “target,” “will,” or similar expressions
are intended to identify forward-looking statements. Such
forward-looking statements include, but are not limited to, statements
about the Company’s plans, objectives, expectations and intentions. The
forward-looking statements are not guarantees of future performance and
are subject to risks, uncertainties and other factors, many of which are
beyond our control, are difficult to predict and could cause actual
results to differ materially from those expressed or forecast in the
forward-looking statements. Our actual results could differ materially
from those anticipated in these forward-looking statements as a result
of various factors, including, but not limited to those described in the
section entitled “Risk Factors” in the Company’s Annual Report on Form
10-K, and as described in the Company’s other filings with the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
to the date of this release. The factors described therein are not
necessarily all of the important factors that could cause actual results
or developments to differ materially from those expressed in any of our
forward-looking statements. Other unknown or unpredictable factors also
could affect our forward-looking statements. Consequently, our actual
performance could be materially different from the results described or
anticipated by our forward-looking statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. Except as required by the federal securities
laws, we undertake no obligation to update any forward-looking
statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180201006406/en/
Tiptree Inc.
Investor Relations, 212-446-1400
ir@tiptreeinc.com
Source: Tiptree Inc.