by Calculated Risk on 5/22/2007 03:58:00 PM

From Reuters: Fremont shares soar on stake, loan unit sales

Fremont ... said it would sell its commercial real estate lending business to iStar Financial Inc. ...

The company will also sell a minority stake in itself to an investor group led by former S&L executive Gerald Ford for about $80 million in preferred stock and warrants.
...
The company in March sold $4 billion in subprime loans at a $140 million loss at a time rival lenders scrambled to stay afloat.

New York-based iStar, which provides investment capital to real estate owners, agreed to buy Fremont's commercial real estate loans and fund up to about $4.4 billion in unfunded loan commitments. The purchase of the commercial real estate lending unit is expected to be completed by June 30.

Santa Monica, California-based Fremont will receive payment of 30 percent of the portfolio upfront in cash, or $1.9 billion. Going forward it will also receive interest payments from the remaining 70 percent to be controlled by iStar.