Friedman, Billings, Ramsey Group, Inc. said on Thursday that it will sell most of First NLC Financial Services, LLC to an affiliate of Sun Capital Partners in a deal worth $75 million. Under the terms of the deal, FBR will invest $15 million as part of a recapitalizatin of the subprime originator, with the remaining funds coming from Sun Capital. What I haven’t seen reported elsewhere is that FBR originally purchased First NLC from Sun Capital in February 2005 in a $101 million cash and stock deal. In a way, then, it certainly feels like FBR is pawning off a misbehaving stepchild. More terms of the deal seem to suggest who was in control at the negotiating table:

During the third quarter, FBR Group expects to fund approximately $15 million in losses associated with further restructuring and operating costs incurred prior to entering into the transaction with Sun Capital. FBR Group will also retain ownership of approximately $250 million of conforming and non-conforming mortgages recently originated by FNLC which are expected to be sold or securitized during the third quarter.