Newcastle Announces Sale of CDO IV Assets for

Newcastle Investment

announced today that it has completed the sale of 100% of the assets in Newcastle CDO IV. Newcastle sold $153 million face amount of collateral at an average price of 95% of par, or $145 million. The sale will result in $77 million of third-party debt being paid off at par and the termination of the trust. Newcastle directly holds approximately 50% of CDO IV's capital structure. This transaction will result in approximately $68 million of proceeds to Newcastle. Newcastle will recover par on $60 million of CDO debt which had been repurchased in the past at an average price of 52 cents and $8 million of proceeds to its subordinated interests. Newcastle expects the final distribution of funds from CDO IV to occur on or about June 24th. As a result of this transaction, Newcastle will record a GAAP gain on sale of approximately $5 million in the second quarter of 2013.