Mr. Cooper Group Completes Sale of Title365 for $500 million

Rhea-AI Summary

Mr. Cooper Group announced the completion of the sale of Title365 to Blend Labs for $500 million on June 30, 2021. This deal included $450 million in cash and a retained interest of 9.9%. Mr. Cooper expects to record an after-tax gain of approximately $350 million from this transaction. CEO Jay Bray emphasized that the sale not only reinforces the company's growth and profitability commitment but also enhances its tangible book value and liquidity, positioning them to drive shareholder value.

Positive

• Sale of Title365 generates $450 million in cash and a $350 million after-tax gain.
• Enhances tangible book value and liquidity.
• Supports growth strategies and increases potential shareholder value.

Negative

• None.

Mr. Cooper Group Inc. (“Mr. Cooper”) announced today that it has completed the sale of Title365 to Blend Labs, Inc. on June 30, 2021, for $500 million, consisting of $450 million in cash and a retained interest of 9.9 percent. Consistent with previously disclosed expectations, Mr. Cooper received cash proceeds of approximately $450 million and recorded an after-tax gain of approximately $350 million.

“This sale and our ability to swiftly and smoothly close this transaction reinforces our commitment to growth and profitability, and is another step we are taking to transform Mr. Cooper into the leading non-bank mortgage company,” commented Chairman and CEO Jay Bray.

“Additionally, this transaction adds meaningfully to our tangible book value and liquidity, which puts us in an excellent position to accelerate both growth in our businesses and drive significant incremental shareholder value.”

Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group and Houlihan Lokey acted as financial advisor to Mr. Cooper Group.

About Mr. Cooper Group

Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210706005218/en/

FAQ

What financial impact did the Title365 sale have on Mr. Cooper Group?

The sale generated approximately $450 million in cash and an after-tax gain of about $350 million.

What percentage of Title365 does Mr. Cooper retain after the sale?

Mr. Cooper retains a 9.9% interest in Title365 after the sale.

When was the Title365 sale completed by Mr. Cooper Group?

The sale of Title365 was completed on June 30, 2021.

What is the total value of the Title365 sale by Mr. Cooper Group?

The total value of the Title365 sale was $500 million.

How does the Title365 sale affect Mr. Cooper Group's liquidity?

The transaction significantly enhances Mr. Cooper Group's liquidity, allowing for accelerated growth.