Amresco received about $120 million before transaction costs at closing and will pick up another $67 million within two months after closing, followed by another $67 million within 18 months. The payout is subject to post-closing price adjustments and indemnity claims.
According to a company statement, the total proceeds equal the book value for the assets sold. Amresco has retained its investment of about $135 million of previously securitized homebuilder loans and related non-recourse debt. The two entities have signed a subservicing agreement for ongoing loan servicing.
"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., Amresco CEO and president.
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