The company, which primarily invests in real estate debt and senior housing assets, said it sold all the assets in Newcastle CDO IV.
The transaction will result in about $68 million in proceeds to Newcastle, which directly holds approximately 50% of that CDO’s capital structure.
The company will recover par on $60 million in CDO debt which had been repurchased in the past at an average price of 52 cents as well as $8 million in proceeds to its subordinated interests.
As a result of the transaction, it will record a gain under generally accepted accounting principles of about $5 million in the second quarter.
Newcastle expects the final distribution of funds from CDO IV to occur on or about June 24.
