NEW YORK, Aug. 12 /PRNewswire-FirstCall/ -- Care Investment Trust Inc. (NYSE: CRE) ("Care"), a real estate investment and finance company investing in healthcare-related real estate and commercial mortgage debt, today announced an agreement in principle with its external manager, CIT Healthcare that includes the following terms:
-- Care will receive an option to require CIT Healthcare to purchase up to $125 million of mortgage assets on an individual basis at any time over the next twelve months.
-- The assets will be sold at the fair market value at the time of sale as determined by an independent third party.
-- Care's management fee payable to CIT Healthcare shall be reduced from 1.75% to 0.875% of book equity, decreasing current expenses by approximately $2.5 million per annum.
-- Care will issue 400,000 ten-year warrants at a strike price of $17 per share to CIT Healthcare under its Manager Equity Plan.
F. Scott Kellman, stated, "These important steps ensure that Care will have the liquidity and earnings to accelerate the Company's transformation to a growing healthcare REIT. The Company has an attractive pipeline of investment opportunities which can now be aggressively pursued with the liquidity provided by these new arrangements."
About Care Investment Trust
Care Investment Trust Inc. is a real estate investment and finance company investing in healthcare-related real estate and commercial mortgage debt. It is externally managed and advised by CIT Healthcare LLC, a wholly-owned subsidiary of CIT Group Inc.
Safe Harbor Statement
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All forward-looking statements (including statements regarding future financial and operating results) involve risks, uncertainties and contingencies, many of which are beyond Care Investment Trust'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," "expect," "estimate," "plan," "target," and similar expressions are generally intended to identify forward-looking statements. Economic, business, funding market, competitive and/or regulatory factors, among others, affecting Care Investment Trust's businesses are examples of factors that could cause actual results to differ materially from those described in the forward-looking statements in addition to those factors specified in Care Investment Trust's Annual Report on Form 10-K for the year ended December 31, 2007. Care Investment Trust is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
For more information on the company, please visit the company's website at http://www.carereit.com
|SOURCE Care Investment Trust Inc.|
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