PACIFICAMERICA FORESEES $6 SHARE PRICE.Byline: Enrique Enrique (IPA [en'ɾike]) is the Spanish form of the name Henry. As a given name, it ranked 298 out of 1219 for males of all ages in the 1990 U.S. Census. 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 workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. 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 soaring: see flight; glider. soaring or gliding Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. 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 Interest-only strip (IO) A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed 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 Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). 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. |
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