Accredited Recommends Shareholders Tender Shares
August 13 2007 - 6:00AM
Business Wire
Accredited Home Lenders Holding Co. (NASDAQ:LEND) (�Accredited� or
�Company�) announced today that it has filed a lawsuit against Lone
Star Fund V (U.S.), L.P. and two of its affiliates (�Lone Star�)
seeking specific performance of Lone Star�s obligations to close
Lone Star�s tender offer for the outstanding common stock of
Accredited and to complete the merger with Accredited. In an August
10, 2007 filing with the Securities and Exchange Commission
(�SEC�), Lone Star alleged that Accredited would fail to satisfy
the conditions to the closing of the tender offer. The SEC filing
also stated that Lone Star did not expect to accept Accredited
shares tendered as of the end of the current offer period ending at
12:00 midnight, Eastern time, on August 14, 2007. As previously
announced, assuming more than 50% of Accredited�s outstanding
shares are tendered by the expiration of the current offer period
on August 14, 2007, the Company believes that all conditions to
closing of the tender offer will have then been satisfied. The
Agreement and Plan of Merger between Accredited and Lone Star (the
�Agreement�) expressly provides that changes generally affecting
the non-prime industry in which the Company operates which have not
disproportionately affected the Company do not provide a basis for
Lone Star to fail to honor its obligations. Further, the Agreement
expressly provides that Lone Star may not refuse to honor its
obligations based on any deterioration in the business, results of
operations, financial condition, liquidity, stockholders� equity
and/or prospects of the Company substantially resulting from
circumstances or conditions existing as of the date that the
Agreement was signed that were generally publicly known as of such
date or that had been previously disclosed by the Company to Lone
Star. Accordingly, Accredited has filed this lawsuit to hold Lone
Star to its obligations, and to hold it fully responsible for any
damages caused by its failure to satisfy those obligations.
Accredited�s Board of Directors� unanimous recommendation of the
Lone Star transaction to stockholders remains unchanged, and the
Company encourages all stockholders to tender their shares prior to
the current tender expiration deadline of 12:00 midnight, Eastern
time, on August 14, 2007. Accredited further announced that neither
Lone Star�s filing indicating its intent not to close the tender
nor its actual failure to close the tender offer does or will
constitute an event of default under any of the Company�s warehouse
facilities. Additionally, the Company has communicated with each of
the warehouse credit providers and plans to continue to fund its
mortgage loan originations. As previously disclosed, Accredited
maintains committed warehouse facilities with a total capacity of
$1.6 billion for U.S. loan originations and $150 million Canadian
for Canada loan originations. Accredited remains open for business
and is continuing to operate in the normal course and to fund
mortgage loans in both the U.S. and Canada. About Accredited
Accredited Home Lenders Holding Co. is a mortgage company operating
throughout the U.S. and in Canada. Accredited originates, finances,
securitizes, services, and sells non-prime mortgage loans secured
by residential real estate. Founded in 1990, the company is
headquartered in San Diego. Additional information may be found at
www.accredhome.com. About Lone Star Funds Lone Star is a leading
U.S. private equity firm. Since 1995, the principals of Lone Star
have organized private equity funds totaling more than $13.3
billion to invest globally in corporate secured and unsecured debt
instruments, real estate related assets and select corporate
opportunities. Additional information may be found at
www.lonestarfunds.com. Forward Looking Statements This release
contains forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934.
These forward-looking statements involve a number of risks and
uncertainties, including the Company�s ability to close the
proposed merger with Lone Star, to enforce Lone Star�s obligation
to close Lone Star�s tender offer for the outstanding common stock
of Accredited, and other risk factors as outlined in Accredited
Home Lenders Holding Co.�s annual report on Form 10-K for the year
ended December 31, 2006, and other documents filed by the Company
with the Securities and Exchange Commission. These and other
factors could cause the Company�s actual results to differ
materially from what it projects or contemplates in its
forward-looking statements. The Company cautions readers that the
non-prime mortgage industry and the Company�s business are subject
to numerous significant risks and uncertainties.
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