RCS Capital Announces Closing of Preferred Stock Issuance & Introduction of Enhanced Corporate Governance Initiatives

RCS Capital Corporation (“RCS Capital”) (NYSE: RCAP) announced the closing of its previously announced private placement of $37.5 million of newly issued convertible preferred stock.

RCS CAPITAL CORPORATION, INC. LOGOIn addition, RCS Capital revealed the addition of Marc Rowan, co-founder of Apollo Global Management, LLC (together with its subsidiaries, “Apollo”) (NYSE:  APO), and Anthony Civale, lead partner and COO of Apollo Credit, to RCS Capital’s Board of Directors (the “Board”).

RCS Capital issued $25.0 million in liquidation preference (face amount) of Series D-1 Convertible Preferred Stock to a subsidiary of Apollo and $12.5 million in liquidation preference (face amount) of Series D-2 Convertible Preferred Stock to Luxor Capital Group and its affiliates (“Luxor”), in a private placement exempt from registration under the Securities Act of 1933, as amended, for an aggregate gross purchase price of $37.5 million.

The company expects to utilize the net cash proceeds from the sale for general corporate purposes, including additional liquidity and working capital to allow the company to continue to capitalize on the attractive market environment.

RCS CapitalRCS Capital also announced the formation of a Nominating and Corporate Governance Committee consisting of Jeff BrownTom McMillenMarc Rowan and Michael Weil, Interim-Chief Executive Officer and director.

Pursuant to the charter of the Nominating and Corporate Governance Committee adopted by the Board, the purpose of the Nominating and Corporate Governance Committee is to identify and recommend individuals qualified to become board members (consistent with criteria approved by the Board), identify and recommend director nominees for each sub-committee of the Board, oversee the evaluation of the board and management, develop and recommend corporate governance guidelines, and oversee such other matters of corporate governance as the committee deems appropriate.


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