Accredited Home Lenders
surged 12% early Tuesday after the struggling mortgage company got a commitment for a $200 million term loan from Farallon Capital Management of San Francisco.
The San Diego-based company said it will pay 13% interest on the five-year secured loan. It can use proceeds for general working capital, the funding of mortgage loans and other corporate needs.
Accredited will issue Farallon 3.3 million 10-year warrants in a private placement, with an exercise price equal to $10 per share.
The news comes just days after Accredited said it agreed to sell substantially all of its $2.7 billion worth of loans held for sale to an unnamed buyer to meet margin calls.