Replies to post #10994 on Corus Bankshares Inc. (fka CORSQ)

[irishintelligence]

Company History

As mentioned above, CVTR was originally formed to make mortgage investments in healthcare properties utilizing CIT Group’s healthcare origination platform to source the investments. In late 2007 amidst the deteriorating credit markets, the company changed course to focus on equity investments in healthcare-related real estate (medical office building, senior housing facilities, etc.).
In early 2008 the company began reviewing its strategic alternatives and assessed both a sale of the company and a full liquidation as alternatives to continued operations. After a significant process the company entered a sale agreement with Tiptree at $9/share (this was before a 3 for 2 stock split; post-split this equates to $6/share). The structure of the deal involved Tiptree Financial Partners purchasing new equity from the company at $9/share with the company using the proceeds from the equity sold to tender for outstanding shares.
The size of the new issue was dependent upon the number of shares tendered. Link to the transaction proxy for additional detail on the Tiptree sale process, here. Ultimately, 97.4% of the outstanding shares were tendered (19.7mm shares) and 6.2mm shares were issued to Tiptree. After the tender offer and equity issuance Tiptree owned 92.2% of the outstanding shares. After taking control Tiptree terminated the relationship with CIT Healthcare thereby internalizing senior management into the company with help from a third party manger (TREIT Management LLC, an affiliate of Tiptree).

[errett]

Sparks---Nice find brother!

[rsr2004us]

VERY good find Sparks, thanks for sharing this. This sheds a lot of light as to what is possible here with Tricadia and also shows that these plays do fly under the radar for various reasons. I'm actually thinking of buying some CVTR.PK now !

I like this part:

Care trades on the pink sheets after being delisted from the NYSE post the Tiptree(Tricadia) deal as a result of the small float. This also limits the potential investor universe.

and this:

Catalysts
Tiptree/Tricadia is very smart money and presumable has plans for the company that could involve growing the asset base through acquisitions. Further, FFO for the first quarter should results in a resumption of the dividend (as a 92% shareholder Tricadia has every incentive to want the dividend resumed and as a REIT the distribution to cash flow is mandatory to maintain the tax status). It is also logical, if not highly likely, that at some stage Care could be acquired by a larger healthcare REIT. In the meantime, while investors wait for Tiptree to articulate and ultimately execute on its strategy the downside is limited given the discount to book value that already exists.