MicroFinancial Incorporated Enters Into Agreement to be Acquired by Funds Managed by Fortress Investment Group

GLOBE NEWSWIRE

12/15/2014

BURLINGTON, Mass. - MicroFinancial Incorporated (Nasdaq:MFI) ("MicroFinancial" or the "Company") has entered into a definitive agreement with MF Parent LP ("Parent") and MF Merger Sub Corp. ("Purchaser"), each an affiliate of funds managed by affiliates of Fortress Investment Group LLC (NYSE:FIG), whereby Parent will acquire all of the outstanding shares of the Company for $10.20 per share in cash pursuant to an Agreement and Plan of Merger dated December 13, 2014 (the "Merger Agreement").

Under the terms of the Merger Agreement, Purchaser will commence a tender offer for all shares of outstanding common stock of the Company for $10.20 per share in cash (the "Tender Offer"). The Tender Offer will expire on the 20th business day following and including the commencement date, unless extended in accordance with the terms of the Merger Agreement and the applicable rules and regulations of the Securities and Exchange Commission. The Company presently intends, subject to approval of the Company's Board of Directors at the time, to declare a single quarterly cash dividend on its common stock in an amount expected to be $0.08 per share with a record date that is no later than January 12, 2015 and a payment date that is on or prior to the time of acceptance of shares of the Company's common stock in the Tender Offer. Following the completion of the Tender Offer, the parties will complete a second-step merger in which any remaining shares of the Company's common stock will be converted into the right to receive the same price per share paid in the Tender Offer (the "Merger").

The announcement follows a comprehensive review undertaken by the Company's Board of Directors to maximize shareholder value. The Company's Board of Directors unanimously approved the Merger Agreement and unanimously recommends that the Company's shareholders tender their shares in the Tender Offer.

Richard F. Latour, the Chief Executive Officer of MicroFinancial, said "We believe that the share price of $10.20 per share represents a compelling value for our shareholders. This price represents a significant premium over the current trading price and our book value."

The closing of the Tender Offer is subject to certain conditions, including the tender of a number of MicroFinancial shares that, together with other shares owned or to be acquired by Purchaser, represent at least two thirds of the total number of MicroFinancial's outstanding shares on a fully diluted basis, and other customary conditions. There is no financing condition to the obligations to consummate the transaction.

The Company

MicroFinancial Incorporated (Nasdaq:MFI) is a financial intermediary specializing in microticket leasing and financing and has been operating since 1986. It is headquartered in Burlington, Massachusetts.

Financial Advisors

Berenson & Company acted as exclusive financial advisor to MicroFinancial in connection with this transaction and provided a fairness opinion to the Board of Directors of MicroFinancial.