(To read more on the debt and equity markets, click here.)

NEW YORK CITY-GSC Capital Corp., a REIT formed last year by GSC Partners, has filed the paperwork for its initial public offering. The firm anticipates raising up to $200 million. As of Sept. 30, 2005, it had a portfolio of approximately $1.8 billion consisting primarily of agency residential mortgage-backed securities and middle market senior secured loans.

According to the SEC filing, GSC Capital intends to use all of the net proceeds to continue to make investments in a diversified investment portfolio of real estate-related securities and real estate loans, as well as various other asset classes. The listing does not specify the number of shares being offered or the pricing.

"Our objective is to provide attractive risk-adjusted returns to our investors through a combination of dividends and capital appreciation," the company states in the filing. "We intend to achieve this objective by opportunistically investing in a broad class of financial assets to construct a diversified investment portfolio that is leveraged where appropriate to achieve attractive risk-adjusted returns and that is structured to comply with the various federal income tax requirements for REIT status."

After its formation, the REIT completed a private offering of common stock and notes in July 2005, raising net proceeds of approximately $183.3 million. The firm subsequently invested a substantial portion of the net proceeds in US government agency and AAA-rated hybrid adjustable rate RMBS. According to the filing, the firm has "started to reallocate a portion of the net proceeds from those offerings into a more diversified, less correlated portfolio of investments. We expect to complete this process by mid-2006, subject to the availability of appropriate investment opportunities."

Deutsche Bank Securities will underwrite the IPO and GSC Capital will be listed on the New York Stock Exchange as GCR. GSC Partners is a Florham Park, NJ-based credit-focused alternative asset management firm that manages with more $9 billion of assets. The firm specializes in credit driven investing including control distressed debt, corporate credit, European mezzanine lending and structured finance. For previous coverage, click here.

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