Lone Star against extends offer for Accredited Home Lenders

By Lisa Kerner

Charlotte, N.C., Sept. 24 - Lone Star Fund V (U.S.) LP subsidiary LSF5 Accredited Investments, LLC once again extended its tender offer for all outstanding shares of Accredited Home Lenders Holding Co. common stock to midnight ET on Oct. 5.

The offer had been extended to midnight on the tenth 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 of Sept. 21, according to a company news release.

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.

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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