72.1 F
San Diego
Monday, Jul 22, 2024
-Advertisement-

Accredited Shares Make a Big Gain

Accredited Home Lenders Holding Co. said Aug. 10 that it has received regulatory approvals to satisfy one of the primary conditions before it can complete its sale to Lone Star Fund, a Dallas-based hedge fund that agreed to buy it in June. The approvals had to be received from states representing 95 percent of Accredited’s 2006 loan volume.

The news sent shares for the San Diego subprime lender, traded on Nasdaq under LEND, up 45 percent to close at $8.90 on Aug. 10.

Accredited also said in a separate filing that Lone Star would likely not obtain a majority of Accredited’s shares by a deadline of Aug. 14. The deadline has been extended twice before, most recently July 30.

Lone Star has to obtain tender offers from a majority of Accredited’s shares before the transaction can be completed. Lone Star said July 30 that a third of Accredited’s shares had been tendered.

On June 4, the company entered into an agreement to be bought by Lone Star for $15.10 per share, or $400 million.

Because of the subprime collapse, Accredited Home Lenders began to entertain options to stay afloat. In March, the company borrowed $230 million from 8 percent shareholder Farallon Capital Management at a 13 percent interest rate to buy time.

, Preet Anand

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-