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Jefferies Financial Group Combines Berkadia and Leucadia Asset Management into Jefferies Group LLC Subsidiary

October 1, 2018

NEW YORK--(BUSINESS WIRE)--Oct 1, 2018--Jefferies Financial Group Inc. (NYSE:JEF) announced today that it has transferred its 50% interest in Berkadia and substantially all of Leucadia Asset Management (“LAM”) into its Jefferies Group LLC subsidiary.

Jefferies’ CEO, Rich Handler, and President, Brian Friedman, noted, “Consolidating our interests in Berkadia and LAM into Jefferies Group amalgamates all our primary financial services operating businesses into one platform. Investors will now be able to see the performance of and value added by our primary financial services businesses in one entity. The balance of our businesses and investments comprise our Merchant Banking business, including our interests in National Beef, Spectrum Brands (formerly HRG), Vitesse, HomeFed and other companies.

“The transfer of Berkadia should increase Jefferies Group’s annuity-like revenue flow and thereby dampen its earnings volatility. Also, the approximate $680 million of transferred Berkadia and LAM book value will be funded with an infusion of approximately $595 million of equity from Jefferies Financial Group and ultimately $85 million of long term debt issued by Jefferies Group. While this internal restructuring will be neutral to the consolidated Jefferies Financial Group, it will be modestly credit enhancing for Jefferies Group. Post transfer, tangible leverage (1) for Jefferies Group will drop by about 1 point from 10.6 times to 9.6 times.”

We will discuss these actions at our Investor Day this Thursday, October 4, as well as further steps we are taking to simplify and add greater transparency into Jefferies Financial Group.

About Jefferies Financial Group Inc.

Jefferies Financial Group Inc. operates the only independent full-service global investment banking firm headquartered in the U.S., together with an established merchant banking business with a proven track record. We engage in investment banking, sales and trading and asset management through Jefferies Group LLC.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181001005985/en/

CONTACT: Jefferies Financial Group Inc.

Laura Ulbrandt, (212) 460-1900

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: Jefferies Financial Group Inc.

Copyright Business Wire 2018.

PUB: 10/01/2018 04:30 PM/DISC: 10/01/2018 04:30 PM

http://www.businesswire.com/news/home/20181001005985/en

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