PACIFICAMERICA FORESEES $6 SHARE PRICE.

Byline: Enrique Rivero Daily News Staff Writer

PacificAmerica Money Center said Wednesday that it expects stockholders to get $6 a share in cash when the company is acquired next year, shedding light on the deal to counter the negative reaction on Wall Street.

But apparently, Wall Street wasn't listening to PacificAmerica's latest message. Shares of the company fell 75 cents Thursday to close at $1.375, a record low. Its price has plummeted over the past six months, during which time it traded as high as $23.50 a share.

Fremont General Corp., a Santa Monica-based workers' compensation firm, had said when it announced the deal last month that it would pay PacificAmerica stockholders $10 a share. The Sept. 11 announcement sent stock prices soaring to $7.25, up $2.375 from the prior day's close.

On Monday, PacificAmerica announced that Fremont changed the terms of its agreement, making it possible to reduce the purchase price to $6 a share in cash if certain standards related to the sale of interest-only strip receivables were met by the time the deal closes in the first quarter of next year.

Anything less and the difference would be subtracted from the $6-a-share purchase price.

Under the changed terms, net proceeds from sale of the strip receivables must be at least 50 percent of the strip receivables' $147 million book value.

Strips are assets that represent the spread between the interest on loans homeowners pay PacificAmerica and the amount it pays to investors who buy bonds and notes collateralized by these mortgages.