Financial services holding company Fremont General Corp. says its wholly owned subsidiary Fremont Investment & Loan has entered into a definitive purchase and sale agreement with CapitalSource TRS Inc., a wholly owned subsidiary of CapitalSource Inc.
The agreement provides for the purchase of substantially all of the bank's assets, which includes the bank's participation interest in certain previously sold commercial real estate loans, the assumption of all the bank's deposits and the acquisition of all the bank's branches, by a California industrial bank to be organized and wholly owned by CapitalSource.
CapitalSource will pay a 2% premium on all of Fremont's deposits and will purchase the bank's participation interest in previously sold commercial real estate loans at a 3% discount to its net book value, the companies state. Other assets to be sold in the transaction at net book value include real and personal property, cash and certain other assets. CapitalSource will pay Fremont at closing an additional $58 million in cash.
