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The news of Accredited Home Loans’ demise reached a fever pitch months ago when Lone Star, a private equity group, announced that it was backing out of the purchase agreement it had signed to acquire the moribund subprime mortgage lender. After a decent amount of grandstanding, legal filings and the slow back-and-forth reduction of the final per-share purchase price; the deal has finally been consummated.
Housing Wire has the details on a match made in heaven hell, as Lone Star axed the entire Accredited board of directors save for their CEO and President. After such an acrimonious courtship it will be interesting to see if the two sides can play nice to turnaround the operation. My guess is don’t hold your breath.
More from Housing Wire:
Lone Star successfully pushed to have the purchase price dropped from $15.10 per share under terms of the original sale agreement announced in June, to a final purchase price of $11.75 per share, or roughly $296 million.
What will be interesting next is to follow the company and see what Lone Star plans to do to turn Accredited in to a money maker. This is one of several deals that have questionable upside, the other being Cerberus and Option One, however at least for Cerberus they are acquiring a massive servicing portfolio which dwarfs revenues from the origination side.
Last 3 posts by Morgan
- Subprime Bananas - June 28th, 2009
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