Lone Star once gain extends tender offer for Accredited Home Lenders

By Lisa Kerner

Charlotte, N.C., Aug. 28 - Lone Star Fund (U.S.), LP subsidiary LSF5 Accredited Investments, LLC extended its tender offer for all outstanding shares of common stock of Accredited Home Lenders Holding Co. to midnight ET on Sept. 12 from midnight ET on Aug. 28.

About 18,639,112 shares, or 74.19%, of Accredited Home Lender's common stock were tendered as of the close of business on Aug. 27, a company news release stated.

The tender offer was originally expected to close on July 16.

Lone Star filed an amendment to its tender offer on Aug. 10 with the Securities and Exchange Commission stating that Accredited Home Lenders had not satisfied all closing conditions due in part to the "drastic deterioration in the financial and operational condition of the company." Under the merger agreement, Lone Star is required, at Accredited Home Lender's request, to extend the offer for up to 10 business days so long as one or more conditions to the closing of the tender offer remain unsatisfied.

It was previously reported in June that Accredited Home Lenders agreed to be acquired by the Lone Star Fund affiliate for $15.10 per share in an all-cash transaction valued at $400 million. The outstanding 9¾% series A perpetual cumulative preferred shares of Accredited Mortgage Loan REIT Trust will remain outstanding. The transaction was slated to close in the third quarter of 2007.

Piper Jaffray & Co. is acting as dealer manager for the tender offer. The information agent is Georgeson Inc.

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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