Sierra Income Corporation
On March 6, 2019, Sierra Income Corporation (Sierra) reported that Marathon Asset Management L.P. (Marathon) submitted a letter to Sierra’s board of directors in which it outlined its opposition to Sierra’s proposed merger (the Proposed Merger) with Medley Capital Corporation (NYSE: MCC) and the proposed subsequent acquisition of Medley Management, Inc. Marathon noted that the Proposed Merger would further entrench an underperforming management team, provide significant compensation to insiders, fail to reduce management expenses, and questioned the likelihood that the Proposed Merger would achieve a higher valuation of the surviving entity’s equity in the publicly-traded market.
Marathon also proposed to Sierra’s board of directors that it be appointed external advisor to Sierra and MCC while scuttling the Proposed Merger. Additionally, Marathon proposed reducing management fees under a new advisory contract. This follows a similar set of proposals from NexPoint Advisors, L.P.
Marathon is a global credit manager with approximately $15.5 billion in AUM.
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