Capmark Financial Group Inc. Announces Closing of Investment Agreement

HORSHAM, Pa.--()--Capmark Financial Group Inc. (the “Company”) today announced that it closed the previously announced investment agreement with Centerbridge Capital Partners II, L.P. and certain of its affiliated funds (“Centerbridge”). Following receipt of the requisite consents of the Company’s stockholders as previously announced, the Company, as contemplated by the investment agreement, (i) filed amended and restated articles of incorporation, (ii) issued to Centerbridge $5.0 million of convertible preferred stock and warrants to purchase up to 43 million shares of common stock and (iii) entered into a note purchase agreement under which Centerbridge committed to purchase up to $100 million of floating-rate subordinated payment-in-kind notes, subject to certain terms and conditions.

Pursuant to its rights as holder of the preferred stock, Centerbridge plans to elect Mr. Matthew Kabaker to the Company’s Board. Mr. Kabaker is a Senior Managing Director at Centerbridge Partners, L.P. and also serves on the Boards of Directors of Aktua Soluciones Financieras, S.L., Focus Financial Partners, LLC and Santander Consumer USA, Inc. The Company’s Board will consist of nine directors following Mr. Kabaker’s election.

Mr. Kabaker said, “Centerbridge is excited to begin our partnership with Capmark and we are grateful to the shareholders of Capmark for their overwhelming support for the transaction. We now look forward to working with the other members of the Board and management to find additional ways to expand Capmark and enhance shareholder value.” Mr. Gene Davis, Executive Chairman of the Company, remarked, “Mr. Kabaker will be a welcomed addition to the Board and we are excited about the potential opportunities to enhance value for our shareholders.”

About Capmark®

Capmark, a commercial real estate finance company, is focused on managing its existing assets and business and potentially acquiring one or more businesses with a view to maximizing shareholder value. Capmark is headquartered in Horsham, Pennsylvania and operates principally in North America. For additional information visit the Capmark’s website at www.capmark.com.

About Centerbridge

Centerbridge Partners, L.P. is a private investment firm with offices in New York and London and has approximately $20 billion in capital under management as of May 2014. The firm focuses on private equity and distressed investments. The firm is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.

Contacts

Capmark Financial Group Inc.
Thomas L. Fairfield, 215-328-1555

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Contacts

Capmark Financial Group Inc.
Thomas L. Fairfield, 215-328-1555