By Saabira Chaudhuri 
 

GE Capital Corp. and asset manager CIFC Corp. (DFR) have inked an agreement to explore business opportunities and facilitate third-party investment advisory referrals.

Under the terms of the agreement unveiled Tuesday, GE Capital will receive one million shares of CIFC common stock--valued at Monday's close at $7.25 million--warrants to purchase two million shares of a newly created class of non-voting CIFC preferred stock, and about $4.9 million in cash from CIFC.

The two companies will form a commercial council made of senior members of both companies. Peter Gleysteen, chief executive of CIFC, and Neeraj Mehta, a GE officer, are slated to serve as co-chairs of the council. GE Capital has the right to appoint an executive to CIFC's board.

GE Capital Debt Advisors LLC, a unit of GE Capital, will exit its third-party investment advisory business, and has agreed to assign its role as manager of four collateralized loan obligation funds representing about $700 million in assets under management to CIFC Asset Management LLC, a unit of CIFC.

The transaction is expected to close in September.

Shares of CIFC closed at $7.25 Monday and were inactive premarket. The stock is up 34% so far this year.

Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com

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