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Investing.com -- Guild Holdings Company (NYSE:GHLD) stock surged 25.6% following the announcement that Bayview Asset Management will acquire the mortgage company in an all-cash transaction valued at approximately $1.3 billion.
Under the terms of the agreement, Guild stockholders will receive $20.00 in cash for each share of common stock, representing a premium of approximately 56% to Guild’s closing price on May 23, the last trading day before Bayview filed its Schedule 13D announcing potential interest in a transaction.
The Board of Directors also intends to authorize a special cash dividend of up to $0.25 per share in 2025, with additional quarterly dividends of the same amount if the merger extends beyond 2025. These dividend payments will not affect the $20.00 per share purchase price.
Following the acquisition, Guild will operate as a privately held independent entity in partnership with Lakeview Loan Servicing, a Bayview affiliate. The company will maintain its brand, business operations, and management team, with no material changes planned to its customer experience.
"Expanding the Guild relationship with Lakeview creates one of the strongest and most compelling mortgage origination and servicing ecosystems in the nation," said Guild Chief Executive Terry Schmidt in the announcement.
The transaction has already received stockholder approval through a written consent from McCarthy Capital Mortgage Investors, LLC, and is expected to close in the fourth quarter of 2025, subject to customary closing conditions.
Morgan Stanley (NYSE:MS) is acting as exclusive financial advisor to Guild, while Goldman Sachs is serving as financial advisor to Bayview.
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