The Board of Newcastle Investment Corp. (NYSE:NCT) announced the spin off of New Residential Investment Corp on January 7, 2013. The spin-off will be effected as a distribution of shares to the holders of common stock of New Residential, which is currently a wholly-owned subsidiary of Newcastle Investment. Transaction includes distribution of one share of New Residential Investment for each share of Newcastle Investment. Board of Directors of Newcastle unanimously approved a plan to spin off New Residential Investment. New Residential will be a publicly traded real estate investment trust. The distribution will be made on or about May 15, 2013 to Newcastle stockholders of record as of 5:00 p.m., Eastern Time, on May 6, 2013.

The spin-off is subject to certain conditions, such as the SEC declaring effective New Residential's registration statement, the filing and approval of an application to list New Residential's common stock on the NYSE and the formal declaration of the distribution by the Board of Directors. Stockholder approval will not be required or sought in connection with the spin-off. Newcastle intends to effect the spin-off in the first quarter of 2013. Houlihan Lokey acted as financial advisor to Newcastle Investment.