PERTH AMBOY, N.J. -- Margaretten Financial Corp. said it has signed a definitive agreement to acquire a Virginia-based mortgage servicing unit from NationsBank Corp.
Margaretten, based in Perth Amboy, said it would pay $134 million in cash for the unit's central asset, a $7.6 billion servicing portfolio. Margaretten also will assume the unit's facilities and staff.
Margaretten said it would fund the acquisition with proceeds from an initial offering this year and from bank financing. First National Bank of Chicago is leading the bank group, a Margaretten official said.