RAMS Home Loans Group Announces Restructure of Business
Tuesday October 2, 2007, 8:29 am

Original Announcement: RAMS Announces Restructure of Business

RAMS Home Loans Group announced a restructuring of its business with the sale of its brand name and its distribution business to Westpac Banking Corporation for $140m. In addition, Westpac will provide up to $2bn of financing to fund new business and to refinance a proportion of RAMS' outstanding US XCP (extendible commercial paper) program. The sale of the brand and distribution business is subject to approval at a shareholder meeting planned for late November. The $140m sale price will be reduced by future trailing commission for RAMS' franchise network, estimated at $15m, which will be determined on completion. Under transitional arrangements, Westpac, if customary conditions are met, will provide up to $500m in funding, via a new warehouse facility, for mortgages settled from 15 November 2007, until the formal completion of the acquisition.

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