John's Florida Real Estate Blog

head_left_image

Countrywide Receives $2 Billion Strategic Equity Investment From Bank Of America

08/22/2007

CALABASAS, Calif., Aug. 22 /PRNewswire/ -- Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider and the leading mortgage lender and servicer in the U.S. announced today that it has received a $2 billion strategic equity investment from Bank of America (NYSE: BAC). The transaction was completed and funded today.

"Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," said Angelo R. Mozilo, chairman and chief executive officer of Countrywide. "Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," added Mr. Mozilo. "This transaction benefits all of Countrywide's constituents, including investors, shareholders, mortgage customers, deposit holders, business partners and employees," concluded Mr. Mozilo.

"We believe that in the current turmoil the stock market has been underestimating the value in Countrywide's operations and assets," said Kenneth D. Lewis, Bank of America chairman and chief executive officer. "This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country. We hope this investment will be a step toward a return to a more normal liquidity in the mortgage markets. Countrywide has a strong mortgage origination business and it services the mortgages of one in seven American households."

Bank of America has invested $2 billion in the form of a non-voting convertible preferred security yielding 7.25 percent annually. The security can be converted into common stock at $18 per share, with resulting shares subject to restrictions on trading for 18 months after conversion.

The agreement between the parties is subject to customary standstill restrictions prohibiting the acquisition of beneficial ownership of additional voting securities of Countrywide.

Goldman Sachs & Co. acted as financial advisor to Countrywide and Wachtell, Lipton, Rosen & Katz served as legal advisor. Bank of America Securities acted as financial advisor to Bank of America, and Cleary, Gottlieb, Stern & Hamilton served as legal advisors.

SOURCE: Countrywide Financial Press Release

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • August 23 2007 04:09PM
Countrywide Receives $2 Billion Strategic Equity Investment From Bank…
share
08/22/2007 CALABASAS, Calif., Aug. 22 /PRNewswire/ -- Countrywide Financial Corporation (NYSE: CFC), a diversified financial services provider and the leading mortgage lender and servicer in the U. S. announced today that it has received… more
Freddie Mac: Mortgage Interest Rates Sink Lower
share
Today 8/23/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans dropped substantially. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6. 52% (6. 49% in the southeast… more
Report Indicates That the Economy May Improve a Bit in the Coming…
share
The Conference Board release a report yesterday that indicates that things may pick up economically in the coming months. They reported that 6 of their 10 indicators increased in July. These positive indicators were consumer expectations, vendor… more
Foreclosure Activity Up 9% in July 2007
share
Yesterday, RealtyTrac┬« reported that 179, 599 filings for foreclosures took place in the past month. This was an increase of 9% from June 2007 and a 93% increase over July of 2006. According to them this comes out to equal 1 foreclosure for every 693… more
Truth in Millage (TRIM) Notices Arrive in Florida
share
In Pasco County and the rest of Florida we are receiving our Truth in Millage or TRIM notices in the mail. The main purpose of these notices is to let us know what our property taxes might be for the year 2007. As in many states we pay our property… more
Selling Your Home Via a Short Sale May Have Income Tax Implications
share
Many of you have probably heard about "short sales". Have you ever wondered what they are? First, let me make it clear that I am neither an accountant or a financial advisor. The information I am placing here is just to make you aware of… more
Two Florida Property Insurance Companies Withdraw Their Requests For…
share
TALLAHASSEE (08/17/2007) - The Florida Office of Insurance Regulation (Office) announced today that AMEX Assurance Company and IDS Property Casualty Insurance Company withdrew their filings. The companies had requested a 49. 1 percent rate increase… more
National Association of Home Builders (NAHB) Applauds Federal Reserve…
share
In response to the troubles in the credit markets, evidenced by the large numbers of mortgage lenders jumping off the cliffs like lemmings, the Federal Reserve lowered the discount rate that it charges banks by 1/2 of a percentage point. They felt… more
PRICE REDUCED! Personal Residence or Investment Opportunity in…
share
For home buyers or investors with just a little vision and willing to apply some TLC, this well-priced property could hold the potential that you have been looking for. This 2 bedroom/1 bath bungalow home has a great bright open feeling that belies… more
Countrywide Financial Goes Looking For Money
share
From many sources I am hearing that Countrywide Financial Corp. is borrowing money to meet its needs in a housing market that is currently on the ropes. Countrywide is one of the largest mortgage companies in the United States. My own mortgage is… more