The sale of San Diego subprime lender Accredited Home Lenders Holding Co. to a Texas private equity firm should be completed this week, said Dallas-based Lone Star Funds on Oct. 8.
Lone Star said that as of Oct. 5 it had received 23.9 million of Accredited’s shares in a stock tender offer, or more than 95 percent of the total Accredited shares outstanding. That threshold would permit the deal to close several days after Oct. 11, according to earlier Lone Star press statements.
The two parties originally agreed to a tender offer acquisition June 4 that called for Lone Star paying $15.10 per share for Accredited, but as the subprime mortgage industry imploded, Lone Star renegotiated the price to $11.75 last month, or an aggregate $311 million.
Accredited Home Lenders, as all subprime lenders have, has been reeling since last year, with a surge of delinquencies and defaulted mortgages. The company that originated nearly $16 billion in home loans in 2006 has halted all of its lending, closed all of its retail offices, and laid off about 3,000 people this year.
As of last month, total employment was about 1,000, down from about 4,200 at the end of last year.
, Mike Allen