TORONTO, Aug. 20, 2019 (GLOBE NEWSWIRE) -- Mount Logan Capital Inc. (NEO: MLC) (“Mount Logan,” “our,” “we,” or the “Company”) today announced that, through its subsidiary Mount Logan Management, LLC, it has entered into its first asset management contract (the “Agreement”) to receive fee income for monitoring certain investments of a leading U.S. based insurance company. The investments for which monitoring services may be provided under the Agreement may include first lien senior secured term loans (including unitranches), last-out term loans, junior debt, and equity co-investments. Mount Logan Management, LLC is a newly formed wholly-owned subsidiary of the Company established for the purpose of asset monitoring and future asset management activities in the U.S.
Ted Goldthorpe, CEO and Chairman of Mount Logan, noted, “We are pleased to announce the signing of our first asset management contract. This marks the continued evolution of our business. We look forward to growing this investment account, developing further relationships with institutional investors to manage credit assets, and generating a growing stream of asset management fee income for Mount Logan.”
To seed the initial portfolio under the Agreement, Mount Logan sold to the insurance company its approximate US$2.3 million (face value) first lien senior secured term loan holding in Myers Energy Power Systems, LLC (“Myers”). Accordingly, Mount Logan will immediately start accruing fee income under the Agreement. The proceeds from Mount Logan’s sale of Myers have been invested in other loans and credit instruments.
Mount Logan Management, LLC will receive recurring fees under the Agreement based on the total amount of invested capital as well as be reimbursed for its reasonable and documented out-of-pocket expenses incurred in connection with the investment monitoring and reporting services.
About Mount Logan Capital Inc.
Mount Logan Capital Inc. is a Canada-based asset manager created to source and execute on credit investment opportunities in North America. The Company holds and actively manages and monitors a portfolio of loans and other investments with credit-oriented characteristics. The Company intends to actively source, evaluate, underwrite, monitor, and primarily invest in additional loans, debt securities, and other credit-oriented instruments that present attractive risk-adjusted returns and present low risk of principal impairment through the credit cycle.
This press release contains forward-looking statements and information within the meaning of applicable securities legislation (collectively referred to herein as “forward-looking statements”). Forward-looking statements can be identified by the expressions "seeks", "expects", "believes", "estimates", "will", "target" and similar expressions. The forward-looking statements are not historical facts, but reflect the current expectations of management of the Company regarding future results or events and are based on information currently available to them. Certain material factors and assumptions were applied in providing these forward-looking statements. The forward-looking statements discussed in this release include, but are not limited to, statements relating to the Company’s future cash flows and earnings, transaction pipeline, the entering into of additional asset management contracts, business plans and strategy, future financial or operating performance, potential interest income generation, sourcing channels, asset management fees, investment characteristics, expected portfolio scale, future credit opportunities, future outlook and anticipated events or results, future financial position, expected plans, and other statements that are not historical facts. All forward-looking statements in this press release are qualified by these cautionary statements. The Company believes that the expectations reflected in forward-looking statements are reasonable based on upon the information available at the time such information was given; however, the Company can give no assurance that the actual results or developments will be realized by certain specified dates or at all. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed (i) under "Risks Factors" in the most recently filed annual information form and management discussion and analysis for the Company, and (ii) under the risk factors sections in the management information circular of the Company dated September 4, 2018. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. The Company undertakes no obligation to publicly update any such statement or to reflect new information or the occurrence of future events or circumstances except as required by securities laws. The forward-looking statements in this press release are made as of the dates of this press release.
This press release is not, and should not be construed as, an offer to sell or acquire any securities in any jurisdiction.
For additional information, please contact:
Dave Guebert, Chief Financial Officer
dave.guebert@mountlogancapital.ca