SALT LAKE CITY, UT – SPS Holding Corp. (SPS) announced today that it and its stockholders have signed a letter of intent with Credit Suisse First Boston (USA), Inc. and its affiliate, DLJ Mortgage Capital, Inc. (together, CSFB), pursuant to which the parties expect to enter into a strategic agreement concerning, among other things, the potential acquisition by CSFB of all of the outstanding stock of SPS.
In addition, as part of the agreement, SPS expects to enter into a servicing rights purchase agreement with CSFB to acquire servicing rights related to mortgage loans totaling approximately $6 billion over the next twelve months. SPS expects to begin acquiring servicing rights from CSFB in the near future.
Any transaction related to the stock of SPS will be subject to the satisfaction of due diligence by all parties, the execution of mutually acceptable definitive agreements that contain terms and conditions customary for transactions of the type contemplated by the letter of intent, and the receipt of any necessary governmental and third party consents or approvals. Although there can by no assurance that a transaction related to the stock of SPS will be consummated, the parties expect that any such transaction would be consummated in the next six months.
Financial terms of the transaction were not disclosed.
About SPS
SPS is a leading nonprime residential mortgage loan servicer headquartered in Salt Lake City with facilities in Jacksonville, FL. It services approximately 270,000 nonprime residential mortgage loans.
Over a 12-month period, SPS implemented leading-edge practices that set the standard in the industry for customer responsiveness while helping to responsibly manage the risk of the nonprime residential loan market.
For more information about SPS, visit the company’s Web site at www.spservicing.com.
About Credit Suisse First Boston
CSFB is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB’s businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 69 locations in 33 countries across five continents. CSFB is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company.
