Lone Star extends tender offer for Accredited Home Lenders

By Lisa Kerner

Charlotte, N.C., Sept. 13 - Lone Star Fund V (U.S.), LP subsidiary LSF5 Accredited Investments, LLC once again extended its tender offer for Accredited Home Lenders Holding Co. The offer is now slated to end at midnight ET on Sept. 14 and can be further extended under the companies' merger agreement, a news release stated.

Some 18,448,957 shares, or about 73.44%, of Accredited Home Lenders' stock had been tendered at the close of business on Sept. 11. The offer was slated to end at midnight ET on Sept. 12.

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. At the time, the transaction was expected to close in the third quarter.

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.

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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