May 3, 2016 – GILBERT, AZ– Southwest Stage Funding, LLC dba Cascade Financial Services (“Cascade” or the “Company”) today announced that it has entered into a definitive agreement with an affiliate of Centerbridge Partners, L.P., a private investment firm (“Centerbridge”), whereby funds advised by Centerbridge will acquire Cascade, a leading lender to buyers of manufactured homes.
Upon closing of the transaction, Cascade expects to expand lending in the manufactured housing sector and introduce a new suite of non-government insured portfolio loan products for buyers of homes placed in communities and on private land. Additional details on the new loan products will be made available upon closing of the transaction, which is expected to occur in the 3rd quarter of 2016, subject to receipt of requisite regulatory approvals and satisfaction of other customary closing conditions.
George Dover, the Chief Executive Officer of Cascade, commented: “Cascade is excited to partner with Centerbridge in the next phase of its growth strategy. Cascade is committed to manufactured housing and will continue to set the standard for financing in the industry. Our partnership with Centerbridge will allow us to continue lending to thousands of families to help them realize their dream of home ownership.”
“Cascade provides a level of service to retailers and communities that is unparalleled in the industry. Through our partnership with Centerbridge, we will continue to provide consumers across the country with access to affordable home loans. I look forward to what this transaction will mean for our 180 team members at Cascade who work tirelessly to offer the best possible experience for our consumers,” said Cody Pearce, President of Cascade.
Todd Kopstein, Senior Managing Director of Centerbridge, said, “Cascade is well positioned to expand the availability of financing in the manufactured housing industry. We believe that factory built housing provides a compelling option for rural and lower income households. George and Cody have built Cascade into a leading lender in the sector, and we are excited about the opportunity to partner with this talented team.”
In connection with the closing of the transaction, Champion Home Builders, Inc. (“Champion”), one of the largest manufactured homebuilders in North America, has agreed to make an investment in the Company alongside Centerbridge. In addition, Keith Anderson, Chief Executive Officer of Champion, will join the board of managers of Cascade following the closing of the transaction. Following the closing of the transaction, Cascade and Champion expect to collaborate on a non-exclusive basis to increase the number of financing options available for purchasing a new manufactured home.
Cascade is a leader in financing for manufactured and modular homes with high customer satisfaction ratings and an A+ rating with the Better Business Bureau. Cascade is proud to offer a number of modular and manufactured homes financing options including FHA, VA, and USDA home loans. Cascade was named Regional Lender of the Year in 2015 and 2016 by the Manufactured Housing Institute.
Centerbridge, headquartered in New York, NY, is a private investment firm with approximately $25 billion in capital under management. The firm focuses on private equity and credit investments and is dedicated to partnering with world-class management teams across targeted industry sectors to help companies achieve their operating and financial objectives.
Troy, Michigan-based Champion is a leading brand in off-site residential and commercial construction, which, through its operating subsidiaries, manufactures buildings at 30 facilities in North America and the United Kingdom. Champion built homes are sold through a network of approximately 1,000 builders, retailers, and developers located throughout North America and the United Kingdom. Champion Commercial Structures, a division of Champion, specializes in multifamily, commercial and industrial modular construction serving developers, builders and large value institutional clients.