The agreement terminated a management and advisory agreement that results in the company paying FIG LLC $400 million, with $200 million paid on the effective date, another $100 million payable on Sept. 15 and $100 million payable Dec. 15, according to the statement.
As a result of the termination of the management agreement, New Residential has ceased being externally managed, and now operates as an internally managed REIT, the statement details.
“The company will continue to be managed by its strong senior leadership team, with Michael Nierenberg as chairman of the board, chief executive officer and president Nick Santoro as chief financial officer and chief accounting officer,” the statement reads. “In addition, the company intends to retain employees of the manager who currently serve in key roles at the company, including, but not limited to, those who support NRZ’s investment, legal, accounting, tax and treasury operations,” the statement added.
“We believe the internalization positions the company for long-term success,” Nierenberg said in a prepared statement. “We view this transaction as a way to drive value for shareholders with expected cost savings, incremental synergies and ability to leverage employees across the NRZ ecosystem. Our strategy has not changed – we will continue to focus on opportunities across the financial services landscape. We are excited about the company’s future and look forward to continuing to produce great returns for our shareholders.”
In terms of the name change, it’s intended to “…highlight a new chapter in the company’s evolution and reinforce its position as a leading diversified company in the financial servicers and real estate sectors,” the company wrote.