Situation Update
On May 4, 2020, the unfortunate news came out that the take-private transaction by Amherst is terminated because "the unprecedented global health crisis has made the integration of the organizations too operationally complex and uncertain at this time", according to the Chairman and CEO of Amherst Holdings.
Instead of the $48 million reverse breakup fee, Amherst has agreed to:
- pay a $25 million fee to RESI
- purchase 4.4 million shares of RESI at $12.50/share, or $55 million proceeds, and
- provide a $20 million promissory notes to RESI maturing in two years
All things