Lone Star gets tenders for more than 95% of Accredited Home in acquisition offer

By Jennifer Chiou

New York, Oct. 8 - Lone Star Fund V (U.S.) LP subsidiary LSF5 Accredited Investments, LLC said it received tenders from holders of more than 95% of the outstanding shares of Accredited Home Lenders Holding Co. common stock.

Lone Star received tenders from holders of 23,966,387 shares in the offer to acquire all shares of the company for $11.75 each in cash.

The offer ended at midnight ET on Oct. 5. Lone Star said the settlement date is Oct. 11.

The offer had been extended to midnight on the 10th business day after Accredited Home Lenders files an amendment to its schedule 14D-9, which was initially filed with the Securities and Exchange Commission in June and explains the basis for the board's recommendation of the merger. The offer was previously slated to end on Sept. 28.

Lone Star had received tenders for 19,149,003 of the outstanding shares, or about 76.22% of Accredited Home Lenders, at the close of business on Sept. 21.

It was reported on Sept. 19 that the companies amended their June 4 merger agreement, effectively settling a pending lawsuit between the companies and reducing the offer price to $11.75 from $15.10 per share.

The acquisition remains structured as an all-cash tender offer for all outstanding shares of Accredited Home Lenders common stock, with the 9¾% series A perpetual cumulative preferred shares of Accredited Mortgage Loan REIT Trust remaining outstanding.

Piper Jaffray & Co. (877 371-5212) was the dealer manager. Georgeson Inc. (888 605-7543 or call collect 212 440-9800) was the information agent.

Accredited Home Lenders is a San Diego mortgage company, and Accredited Mortgage Loan REIT Trust is a Maryland real estate investment trust formed in May 2004.

Lone Star is a Dallas private equity firm.

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