AMRESCO and Prism Financial Corporation Close Transaction
DALLAS, Sept. 22 /PRNewswire/ -- AMRESCO, INC. (Nasdaq: AMMB) and Prism
Financial Corporation announced today the closing of the sale of AMRESCO's
homebuilder lending and servicing division, including a portion of the loans
held by AMRESCO, to Prism. The homebuilder lending group will become a
business unit of Prism Mortgage Company, a wholly owned subsidiary of Prism
Financial, one of the nation's leading retail mortgage banking companies. The
unit will operate as Prism Builder Finance Group.
At closing, AMRESCO received cash proceeds of approximately
$120.0 million, before transaction costs. Subsequent to closing, AMRESCO is
scheduled to receive approximately $6.7 million within 2 months and an
additional $6.7 million within 18 months, subject to offsets by Prism for
post-closing price adjustments or indemnity claims. The total proceeds
approximate book value for the assets sold. AMRESCO has retained its
investment in approximately $135.0 million of previously securitized
homebuilder loans and related non-recourse debt. A subservicing agreement has
been executed between AMRESCO and Prism for the ongoing servicing of such
loans.
"The closing of this transaction represents a significant step for AMRESCO
in exiting its more capital intensive businesses. We will continue to focus
our attention on our remaining small and middle market business lending
platforms and on reducing corporate costs," says Robert H. Lutz, Jr., Chief
Executive Officer and President of AMRESCO |
