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Wednesday, Jul 17, 2024
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Accredited Tender Offer Deadline Extended

The deadline for a tender offer for the shares of Accredited Home Lenders Holding Co. has been extended to July 31 from the earlier deadline of July 16.

Accredited, a San Diego-based subprime mortgage lender, announced the sale of the company to Lone Star Funds, a Dallas-based hedge fund, for $15.10 per share or an aggregate $400 million, in May.

At the time, the offer was viewed as a positive for the troubled lender that has seen a huge spike in problem loans because of delinquencies and defaults by mortgage borrowers.

However, since the sale was announced, Accredited’s stock price has declined to less than $14, an indicator that some investors doubt the deal will be consummated.

Lone Star said in a July 17 regulatory filing that it has received about 5.3 million shares of Accredited, or 21 percent of the outstanding shares. The transaction, which was expected to be completed by the end of the third quarter, requires a majority of Accredited’s shares to be tendered.

Traded on Nasdaq under LEND, shares of Accredited closed at $14.07 on July 17.

, Mike Allen

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