PHILADELPHIA, PA--(Marketwire - January 6, 2011) - Resource Capital Corp. (
LCC is a joint venture among RSO, Guggenheim Securities, LLC ("Guggenheim") and LEAF Financial Corporation ("LEAF"), the commercial finance subsidiary of Resource America, Inc. (
Jonathan Cohen, CEO of RSO, said, "We see tremendous opportunity for the small-ticket leasing business in today's economic environment. A dearth of competition in the sector is resulting in very attractive spreads over the cost of funds, which remain low with the re-emergence of the securitization market for this asset class. The structure of the investment puts us in a senior equity position in a company with strong partners and a management team that has a proven track record in the sector, and we believe the warrant coverage provides an excellent means of building book value for our shareholders. We believe that investments like this do not come up frequently and allow our shareholders to participate in both a regular stream of income and substantial upside potential."
Resource Capital Corp. is a commercial real estate specialty finance company that qualifies as a real estate investment trust, or REIT, for federal income tax purposes. RCC's investment strategy focuses on commercial real estate-related assets and, to a lesser extent, higher-yielding commercial finance assets. RCC invests in the following asset classes: commercial real estate-related assets such as whole loans, A-notes, B-notes, mezzanine loans, mortgage-related securities and real estate joint ventures, and commercial finance assets such as other asset-backed securities, senior secured corporate loans, lease receivables, trust preferred securities, structured notes and debt tranches of collateralized debt obligations.
RCC is externally managed by Resource Capital Manager, Inc., an indirect wholly owned subsidiary of Resource America, Inc. (
For more information, please visit the Resource Capital Corp. website at www.resourcecapitalcorp.com or contact investor relations at pkamdar@resourceamerica.com.
This press release includes statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in the documents filed by Resource Capital Corp. from time to time with the Securities and Exchange Commission. Resource Capital Corp. undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events.
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