Mr. Cooper Group Inc. Announces Pricing of Offering of $600 Million of Senior Notes

Rhea-AI Summary

Mr. Cooper Group Inc. (NASDAQ: COOP) announced a pricing for a $600 million offering of 5.75% Senior Notes due 2031. The Notes will yield interest at 5.75% annually, maturing on November 15, 2031, with interest payments commencing on May 15, 2022. The offering is anticipated to close around November 4, 2021, with net proceeds to be allocated for general corporate purposes, including purchasing mortgage servicing rights. The Notes are exempt from registration requirements under the Securities Act. Forward-looking statements may be subject to risks that could affect outcomes.

Positive

• Successful pricing of $600 million in Senior Notes indicates strong market interest.
• 5.75% interest rate on the Notes is relatively attractive for long-term investors.
• Proceeds expected to be used for purchasing mortgage servicing rights, potentially enhancing business operations.

Negative

• Exemption from registration may limit broader market participation in the offering.

DALLAS--(BUSINESS WIRE)-- Mr. Cooper Group Inc. (NASDAQ: COOP) (“Mr. Cooper”) announced the pricing of an offering by Nationstar Mortgage Holdings Inc., a direct wholly-owned subsidiary of Mr. Cooper (“Nationstar”), of $600,000,000 5.75% Senior Notes due 2031 (the “Notes”). The Notes will bear interest at 5.75% per annum and will mature on November 15, 2031. Interest on the Notes will be payable semi-annually on May 15 and November 15 of each year, beginning on May 15, 2022.

The offering is expected to close on or around November 4, 2021, subject to customary closing conditions. It is expected that the net proceeds of the offering will be used for general corporate purposes, including, without limitation, the purchase of mortgage servicing rights.

The Notes will be guaranteed on a joint and several basis by Mr. Cooper and wholly-owned domestic subsidiaries of Nationstar (other than certain excluded subsidiaries).

The offering of the Notes was made in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), in the United States only to investors who are “qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, or outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the Notes in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

This press release may include information that could constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in Mr. Cooper’s Securities and Exchange Commission filings. Past results of Mr. Cooper are not necessarily indicative of future results. Mr. Cooper does not undertake any obligation to update any forward-looking statement.

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 originators and servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211101006000/en/

Investor Contact:

Kenneth Posner, SVP Strategic Planning and Investor Relations

(469) 426-3633

Shareholders@mrcooper.com

Media Contact:

Christen Reyenga, VP Corporate Communications

MediaRelations@mrcooper.com

Source: TX-MR.-COOPER-GROUP

FAQ

What are the details of Mr. Cooper's Senior Notes offering?

Mr. Cooper Group announced the pricing of $600 million in 5.75% Senior Notes due November 15, 2031, with the offering closing around November 4, 2021.

How will Mr. Cooper use the proceeds from the Senior Notes?

The proceeds will be used for general corporate purposes, including the purchase of mortgage servicing rights.

What is the interest rate on Mr. Cooper's Senior Notes?

The interest rate on the Senior Notes is 5.75% per annum.

What are the risks associated with Mr. Cooper's forward-looking statements?

Forward-looking statements may involve risks that could result in actual results differing materially from expectations, as detailed in SEC filings.