GSC Partners Forms
New $200 Million REIT

GSC Partners, a private investment firm specializing in credit-based alternative investment strategies, announced the formation of GSC Capital Corp., a Real Estate Investment Trust (REIT).

The new REIT will invest in real estate-related securities, whole loan mortgages, bank loans, corporate loans and other asset-backed securities. In addition, GSC Capital Corp. will utilize structured financing techniques which are intended to mitigate interest rate risks and achieve attractive term financing. Deutsche Bank Securities served as sole underwriter for the 144A offering, comprised of approximately $100 million of equity and $100 million of convertible debt. GSC Partners co-invested $17 million pro rata in the equity and convertible debt.

GSC Capital Corp. will leverage the investment and operational expertise of GSC Partners, its outside manager, which also manages other funds specializing in complex credit transactions in control distressed debt investing, corporate credit, European mezzanine lending and structured finance.

"We are building businesses around the firm's well established credit expertise supported by investment professionals with demonstrated track records in structured finance and corporate credit," said Alfred C. Eckert III, Chairman and Chief Executive Officer of GSC Partners. "The formation of this fund demonstrates our on-going commitment to creating value for our investors through the continued development of new investment opportunities where we can leverage our expertise and our experience.

"We have created a superior platform that enables us to create value for our investors through rigorous quantitative and qualitative analysis and innovative application of securitization technologies," said Frederick H. Horton, a Managing Director of GSC Partners who serves as Chief Executive of GSC Capital Corp.

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