Tetragon Financial Group Limited (“TFG”) to Acquire Lyon Capital Management
has entered into a definitive agreement with Calyon and certain of its
affiliates (collectively, “Calyon”) under which TFG will acquire Lyon Capital
Management LLC (“LCM”) and certain collateralized loan obligation (“CLO”)
securities.
LCM was established by Calyon, the Corporate and Investment Bank of
Credit Agricole Group, as an asset manager in 2001 and currently has
approximately
that the existing LCM management team will continue in their current roles.
Management LP, the investment manager of TFG (the “Investment Manager”),
commented: “We are very excited about the opportunity to bring LCM, a
profitable operating business, into TFG’s asset pool. We think that the
introduction of such a business has the potential to provide TFG with a high
quality and repeatable income stream that would supplement TFG’s current
income, which is generated primarily from the ownership of a portfolio of
CLOs, and will further position TFG to benefit from consolidation in the loan
management space.”
“LCM currently serves as manager for two of the CLO deals held by TFG and
we have been very pleased with their performance,” said
a director of TFG and a principal of the Investment Manager. “We think of
them as an asset manager focused on credit fundamentals and they have
consistently been among TFG’s best performing asset managers. We also think
there is good value in the CLO securities TFG is purchasing and that aspect
of the transaction fits nicely into TFG’s core business.”
The consummation of the transaction is subject to closing conditions
customary to similar transactions. The transaction is expected to close early
in the first quarter of 2010.
In connection with the transaction, LCM will enter into a joint venture
with an affiliate of the Investment Manager, Polygon Management LP
(“Polygon”), pursuant to which Polygon will purchase a 25% equity interest in
LCM. Certain Polygon affiliates will also enter into an agreement with LCM to
provide operating, infrastructure and administrative services to LCM,
including services that have historically been provided to LCM by Calyon.
Further information may be found on the TFG website at the following address:
http://www.tetragoninv.com/tfg/about/orgstructure.
About Tetragon:
Tetragon Financial Group Limited (TFG) is a Guernsey closed-ended
investment company traded on Euronext Amsterdam by NYSE Euronext under the
ticker symbol “TFG.”
Tetragon Financial Group Limited (TFG) currently invests primarily
through long-term funding vehicles such as collateralized loan obligations in
selected securitized asset classes and aims to provide stable returns to
investors across various interest rate and credit cycles.
This release does not contain or constitute an offer to sell or a
solicitation of an offer to purchase securities in
other jurisdiction. The securities of TFG have not been and will not be
registered under the US Securities Act of 1933 (the “Securities Act”), as
amended, and may not be offered or sold in
unless they are registered under applicable law or exempt from registration.
TFG does not intend to register any portion of its securities in
States
addition, TFG has not been and will not be registered under the US Investment
Company Act of 1940, and investors will not be entitled to the benefits of
such Act. TFG is registered in the public register of the Netherlands
Authority for the Financial Markets under Section 1:107 of the Financial
Markets Supervision Act (the FMSA”) as a collective investment scheme from a
designated country. This release constitutes regulated information
(“gereglementeerde informatie”) within the meaning of Section 1:1 of the FMSA.
For further information, please contact:
TFG:
David Wishnow/Yuko Thomas
Investor Relations
ir@tetragoninv.com
Press Inquiries:
Finsbury
Charles Chichester/Talia Druker/Rollo Head
+44-20-7251-3801
SOURCE Tetragon Financial Group Limited