CV Holdings in Newport Beach, Calif., agreed to a new financing arrangement with Tricadia Capital Management in New York to expand its business of acquiring and servicing nonperforming loans.
CV agreed to sell up to $50 million of preferred stock and other securities to Tricadia. On Monday, Tricadia acquired $20 million of nonconvertible senior preferred stock from CV, and also received 4.35 million shares of common stock. It also acquired an option to receive an additional 8.3 million shares of CV's common stock.
Tricadia may require CV to redeem its preferred stock at any point after the five-year anniversary of its issuance.
The agreement between CV and Tricadia carries
CV said the investment agreement with Tricadia is expected to replace the existing funding source for the co-investment requirements on its nonperforming-loan business. CV is evaluating additional investment opportunities, the company said.
