Deerfield Capital Corp. Announces Reduction in Occupancy Expense
03 Décembre 2009 - 10:01PM
PR Newswire (US)
CHICAGO, Dec. 3 /PRNewswire-FirstCall/ -- Deerfield Capital Corp.
(NYSE Amex: DFR) ("DFR" or the "Company") today announced the
successful completion of a plan to significantly reduce the
Company's occupancy expense. Under a lease amendment signed on
November 27, 2009, the Company expects to vacate the 69,000 square
feet it presently occupies under a lease expiring in 2021 and
consolidate operations into approximately 25,000 square feet
located in the same building by May 2010. As a result of the
amendment, the Company projects that its annual occupancy expense
will decline by approximately $1.3 million. Commenting on the
amendment, Jonathan Trutter, Chief Executive Officer, said, "This
amendment represents a unique opportunity for us to move into
nearby space that will leave us room to grow while saving nearly
$1.3 million a year. The substantial reduction in annual rent
expense and relief from other obligations under the lease
represented a compelling value for the Company and its
shareholders." The amendment provides for a $1.8 million reduction
in the amount of the letter of credit that the Company is required
to maintain upon the satisfaction of certain conditions. A portion
of the $1.8 million will be used to fund expenditures related to
relocating the Company's offices, and the balance will be available
for investment in the growth of the Company. The move will result
in a non-cash acceleration of depreciation and amortization expense
from certain leasehold improvements and fixed assets as a result of
a shorter estimated life. The Company also expects to achieve
additional savings from lower operating, insurance and maintenance
costs associated with the new smaller space. About the Company DFR,
through its subsidiary, Deerfield Capital Management LLC, manages
client assets, including bank loans and other corporate debt,
residential mortgage backed securities, government securities and
asset-backed securities. In addition, DFR has a principal investing
portfolio comprised of fixed income investments, including bank
loans and other corporate debt and residential mortgage backed
securities. For more information, please go to the Company website,
at http://www.deerfieldcapital.com/. NOTES TO PRESS RELEASE Certain
statements in this press release are forward-looking as defined by
the Private Securities Litigation Reform Act of 1995. These include
statements regarding future results or expectations.
Forward-looking statements can be identified by forward-looking
language, including words such as "believes," "anticipates,"
"expects," "estimates," "intends," "may," "plans," "projects,"
"will" and similar expressions, or the negative of these words.
Such forward-looking statements are based on facts and conditions
as they exist at the time such statements are made. Forward-looking
statements are also based on predictions as to future facts and
conditions, the accurate prediction of which may be difficult and
involve the assessment of events beyond the control of DFR and its
subsidiaries. Forward-looking statements are further based on
various operating assumptions, including, but not limited to, the
assumptions that DFR will be able to vacate its current space by
May 2010 and that the amendment to the lease will generate the
expected cash savings. Caution must be exercised in relying on
forward-looking statements. Due to known and unknown risks,
including the risk that the assumptions on which the
forward-looking statements are based prove to be inaccurate, actual
results may differ materially from expectations or projections. DFR
does not undertake any obligation to update any forward-looking
statement, whether written or oral, relating to matters discussed
in this press release, except as may be required by applicable
securities laws. DATASOURCE: Deerfield Capital Corp. CONTACT: Frank
Straub, Chief Financial Officer of Deerfield Capital Corp.,
+1-773-380-6636; or Leslie Loyet of Financial Relations Board,
+1-312-640-6672, for Deerfield Capital Corp. Web Site:
http://www.deerfieldcapital.com/
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