By Lisa Kerner
Charlotte, N.C., June, 4 - Accredited Home Lenders Holding Co. agreed to be acquired by Lone Star Fund V (U.S.) LP's affiliate Lone Star U.S. Acquisitions, LLC in an all-cash transaction valued at about $400 million.
Under the agreement, Accredited Home Lenders shareholders will receive $15.10 per share in a tender offer, followed by a merger in which any remaining untendered shares will be converted into the same $15.10 per share price.
The outstanding 9¾% series A perpetual cumulative preferred shares of Accredited Mortgage Loan REIT Trust will remain outstanding.
Lone Star expects the tender offer to begin within 10 business days, with the transaction slated to close in the third quarter 2007.
Accredited Home Lenders' board unanimously approved the transaction.
"After a careful analysis, we believe this agreement is the best alternative available to protect shareholder value and provide the capital we need to support the company's business over the long-term," Accredited Home Lenders chairman and chief executive officer James A. Konrath said in a company news release.
Accredited Home Lenders was advised by Bear, Stearns & Co. Inc.; Friedman, Billings, Ramsey Group Inc.; Houlihan Lokey Howard & Zukin; Dewey Ballantine LLP; and Morris, Nichols, Arsht & Tunnell LLP.
Bear, Stearns and Houlihan Lokey Howard & Zukin provided a fairness opinion to Accredited Home Lenders' special committee.
Accredited Home Lenders is a San Diego mortgage company, while Accredited Mortgage Loan REIT Trust is a Maryland real estate investment trust formed in May 2004.
Lone Star is a Dallas private equity firm.
| Acquirer: | Lone Star Fund V (U.S.) LP
|
| Target: | Accredited Home Lenders Holding Co.
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| Price per share: | $15.10
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| Announcement date: | June 4
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| Expected closing: | Third quarter 2007
|
| Stock price for target: | Nasdaq: LEND: $13.76 on June 1
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