Onity Group Announces Closing of MSR Asset Vehicle Sale to Oaktree
Onity Group (NYSE: ONIT) has completed the sale of its 15% stake in MSR Asset Vehicle (MAV) to Oaktree Capital Management for $49.5 million in cash. The company's subsidiary, PHH Mortgage , will continue as the exclusive subservicer of MAV's portfolio for five years and will subservice most new MSRs acquired by MAV. The transaction includes a 36-month restriction on MAV's MSR sales.
Concurrent with the sale, Onity used the proceeds from a $500 million Senior Notes offering (9.875% due 2029) and the MAV sale proceeds to redeem $289 million of PHH Mortgage's 7.875% Senior Notes and $285 million of Onity's 12.00%/13.25% Senior Second Lien Notes.
Onity Group (NYSE: ONIT) ha completato la vendita della sua partecipazione del 15% nel MSR Asset Vehicle (MAV) a Oaktree Capital Management per 49,5 milioni di dollari in contante. La controllata dell'azienda, PHH Mortgage, continuerà come subservicer esclusivo del portafoglio di MAV per cinque anni e gestirà la maggior parte dei nuovi MSR acquisiti da MAV. La transazione include una restrizione di 36 mesi sulle vendite di MSR di MAV.
Contestualmente alla vendita, Onity ha utilizzato i proventi di un'offerta di Note Senior da 500 milioni di dollari (9,875% in scadenza nel 2029) e i proventi dalla vendita di MAV per riscattare 289 milioni di dollari delle Note Senior da 7,875% di PHH Mortgage e 285 milioni di dollari delle Note Senior Second Lien da 12,00%/13,25% di Onity.
Onity Group (NYSE: ONIT) ha completado la venta de su participación del 15% en el MSR Asset Vehicle (MAV) a Oaktree Capital Management por 49,5 millones de dólares en efectivo. La filial de la empresa, PHH Mortgage, continuará como el subservicer exclusivo de la cartera de MAV durante cinco años y gestionará la mayoría de los nuevos MSR adquiridos por MAV. La transacción incluye una restricción de 36 meses sobre las ventas de MSR de MAV.
Concurrentemente con la venta, Onity utilizó los ingresos de una oferta de Notas Senior de 500 millones de dólares (9,875% con vencimiento en 2029) y los ingresos de la venta de MAV para redimir 289 millones de dólares de las Notas Senior de 7,875% de PHH Mortgage y 285 millones de dólares de las Notas Senior Second Lien de 12,00%/13,25% de Onity.
Onity Group (NYSE: ONIT)는 Oaktree Capital Management에 4950만 달러의 현금으로 MSR 자산 차량(MAV)의 15% 지분을 판매 완료했습니다. 회사의 자회사인 PHH Mortgage는 MAV 포트폴리오의 독점 서브서버로 5년 동안 계속 활동하며, MAV가 인수한 대부분의 신규 MSR을 서브서빙할 것입니다. 이 거래에는 MAV의 MSR 판매에 대한 36개월의 제한이 포함됩니다.
판매와 동시에 Onity는 5억 달러 규모의 Senior Notes 제공(9.875%, 2029년 만기) 및 MAV 판매 수익을 사용하여 PHH Mortgage의 7.875% Senior Notes 2억 8900만 달러 및 Onity의 12.00%/13.25% Senior Second Lien Notes 2억 8500만 달러를 상환했습니다.
Onity Group (NYSE: ONIT) a finalisé la vente de sa participation de 15 % dans le MSR Asset Vehicle (MAV) à Oaktree Capital Management pour 49,5 millions de dollars en espèces. La filiale de l'entreprise, PHH Mortgage, continuera en tant que sous-traitant exclusif du portefeuille de MAV pendant cinq ans et sous-traitera la majorité des nouveaux MSR acquis par MAV. La transaction comprend une restriction de 36 mois sur les ventes de MSR de MAV.
Parallèlement à la vente, Onity a utilisé les produits d'une émission de Senior Notes de 500 millions de dollars (9,875 % échue en 2029) et les produits de la vente de MAV pour racheter 289 millions de dollars des Senior Notes de 7,875 % de PHH Mortgage et 285 millions de dollars des Senior Second Lien Notes de 12,00 %/13,25 % d'Onity.
Onity Group (NYSE: ONIT) hat den Verkauf seines 15%-Anteils am MSR Asset Vehicle (MAV) an Oaktree Capital Management für 49,5 Millionen Dollar in bar abgeschlossen. Die Tochtergesellschaft des Unternehmens, PHH Mortgage, wird weiterhin als exklusiver Subdienstleister für das Portfolio von MAV tätig sein und den Großteil der neu erworbenen MSRs durch MAV verwalten. Die Transaktion umfasst eine 36-monatige Einschränkung für den Verkauf von MAVs MSRs.
Parallel zum Verkauf hat Onity die Erlöse aus einer Senior Notes-Anleihe über 500 Millionen Dollar (9,875 % fällig 2029) und die Erlöse aus dem MAV-Verkauf verwendet, um 289 Millionen Dollar der 7,875 % Senior Notes von PHH Mortgage und 285 Millionen Dollar der 12,00 %/13,25 % Senior Second Lien Notes von Onity einzulösen.
- Secured $49.5 million in cash from MAV stake sale
- Maintained exclusive subservicing rights for MAV portfolio for 5 years
- Reduced high-cost corporate debt through refinancing
- Replaced higher interest rate notes (12.00%/13.25%) with lower rate notes (9.875%)
- Divested 15% ownership stake in MAV
- Increased total debt to $500 million through new Senior Notes
Insights
This transaction represents a significant financial restructuring for Onity Group. The
The deal's structure maintains revenue streams through a 5-year exclusive subservicing agreement, while the 36-month restriction on MSR sales provides stability. The transaction strengthens Onity's balance sheet by reducing expensive debt while preserving key business relationships and operational capabilities. This financial engineering should enhance profitability and provide greater financial flexibility for future growth initiatives.
The deal structure demonstrates sophisticated market positioning in the mortgage servicing sector. Retaining subservicing rights while divesting the MAV ownership stake is strategically sound, allowing Onity to maintain steady fee-based income without the capital requirements of direct MSR ownership. The 5-year exclusive subservicing agreement secures a stable revenue stream, while the 36-month MSR sale restriction protects against portfolio disruption.
This arrangement aligns with industry trends where non-bank servicers are optimizing their capital structure while maintaining operational scale. The partnership with Oaktree, a major institutional investor, adds credibility and potentially opens doors for future MSR-related opportunities. The reduced debt burden positions Onity more competitively in the challenging mortgage servicing market.
WEST PALM BEACH, Fla., Dec. 03, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that it has completed the previously announced transaction with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to sell the Company’s
Onity’s subsidiary, PHH Mortgage Corporation, will remain the exclusive subservicer of the existing MAV portfolio for an initial term of five years and will subservice the majority of new MSRs acquired by MAV. MAV also will be subject to certain restrictions on near-term MSR sales for 36 months following the closing of the MAV sale.
Concurrent with the closing of the transaction, the net proceeds from the offering of
Glen A. Messina, Chair, President and CEO of Onity Group, said, “We are pleased to complete this transaction with Oaktree which facilitates a significant enhancement to our capital structure. The agreement with Oaktree enables us to continue our important subservicing relationship with MAV and meaningfully reduce our highest-cost corporate debt, which we expect will support future earnings growth and provide financial flexibility. We look forward to the continuation of our strategic partnership with Oaktree and to future opportunities.”
For additional information regarding these transactions, please see the Company’s Form 8-K filed with the Securities and Exchange Commission on December 3, 2024.
About Onity Group
Onity Group Inc. (NYSE: ONIT) is a leading non-bank mortgage servicer and originator providing solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to education and providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, statements relating to future earnings growth and future strategic opportunities with Oaktree. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including the risks and uncertainties detailed in our reports and filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2023, and current reports and quarterly reports filed with the SEC since such date. Anyone wishing to understand Onity’s business should review our SEC filings.
For Further Information Contact:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com
FAQ
How much did Onity Group (ONIT) sell its MAV stake for?
What is the interest rate on Onity's new 2029 Senior Notes?
How long will PHH Mortgage remain MAV's exclusive subservicer?
What restrictions were placed on MAV's MSR sales after the transaction?
