Palm Harbor Homes Completes $117 Million Securitization By CountryPlace Mortgage
Palm Harbor Homes, Inc. (NASDAQ: PHHM) today announced that CountryPlace Mortgage, Ltd., the Company’s 80 percent owned full-service chattel lender subsidiary, has closed CountryPlace Manufactured Housing Contract Trust 2007-1, a $117 million Rule 144A securitization. The securitization consists of asset-backed certificates secured by a portfolio of chattel loans and land-and-home loans originated and serviced by CountryPlace Mortgage. The proceeds from the securitization will be used to repay borrowings from its warehouse facility and to originate new loans. The Company has also renewed its $150 million warehouse facility through March 2008. The securities were offered and sold only to “qualified institutional buyers” in reliance on Rule 144A under the Securities Act of 1933, as amended.
Commenting on the transaction, Larry Keener, chairman and chief executive officer of Palm Harbor Homes, Inc., remarked, “We are very pleased with the high level of investor demand for our loan product in spite of the recent difficult market conditions. This represented our second securitization in 18 months, and we were able to close the 2007 issue on more favorable terms than the prior issue. We believe the positive market response, in contrast to the tightening mortgage market, reflects the strength of our business model and the historically strong performance of CountryPlace. By providing viable financing alternatives for only creditworthy customers, we believe we have further distinguished Palm Harbor Homes in the marketplace"
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