Fortress Investment Group plans to cash out its entire stake in commercial mortgage banker Walker & Dunlop, according to a March 16 press release.
Fortress will sell its 8.2 million shares of Walker & Dunlop in a secondary offering with Morgan Stanley & Co. serving as the underwriter, Walker & Dunlop said in the release.
Concurrently, the Bethesda, Md.-based mortgage banker will repurchase 3 million additional shares at the same price, subject to the closing of the secondary offering.
Walker & Dunlop priced the offering on Tuesday morning but did not disclose the amount. The stock closed up $0.45 per share on Tuesday afternoon, at $17.13.
If the offering is fully subscribed, following that and the share repurchase Fortress will no longer hold any shares in the company.
The share repurchase is not part of a broader plan on Walker & Dunlop’s part and is being funded with cash on hand, the company said. The repurchased shares will no longer be outstanding following the deal.
