iStar (SFI Quote) agreed to pay $1.9 billion in a deal that will give it control of Fremont General's (FMT Quote) commercial real estate business.
Shares of Fremont soared 40% in early trading Tuesday as an outside investor group set plans to take control of the scandal-tarred lender.
New York-based iStar will take over Fremont's commercial real estate business and take a 30% stake in Fremont's $6.5 billion commercial loan portfolio. Fremont will retain a 70% stake in that pool. iStar also agreed to fund up to $4.4 billion worth of unfunded loan commitments associated with the portfolio.
iStar said it expects the deal to add 10 to 20 cents a share to earnings this year. It said it has interim financing committed to fund the transaction that it expects to replace through the issuance of debt and equity securities sometime following the closing of the transaction. After the closing, iStar's total assets will exceed $14 billion. ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,328.89 | 1,102.47 | 2,211.69 | 35.46 |
Oil *
73.92
|
|
UP
20.63
|
UP
6.40
|
UP
31.64
|
UP
0.59
|
10 Yr
3.55%
SPDR Gold
108.95
|
|
+0.20%
|
+0.58%
|
+1.45%
|
+1.69%
|
Data delayed 20 minutes |
Connect with TheStreet