Onity Group Announces Pricing of $500 Million of Senior Notes Due 2029
Onity Group (NYSE: ONIT) announced the pricing of $500 million of 9.875% Senior Notes due 2029 at 99.556% of principal value. The notes will be initially issued by PHH Escrow Issuer , a subsidiary of PHH The proceeds, along with additional cash, will be held in escrow pending conditions including the completion of Onity's sale of its 15% stake in MSR Asset Vehicle to Oaktree Capital Management funds. Upon meeting escrow conditions, PHH will become co-issuer, with Onity and certain subsidiaries becoming guarantors. The proceeds will be used to redeem PHH Mortgage's 7.875% Senior Notes due 2026 and Onity's 12.00%/13.25% Senior Second Lien Notes due 2027.
Onity Group (NYSE: ONIT) ha annunciato la fissazione del prezzo di 500 milioni di dollari di Obbligazioni Senior con un tasso del 9,875% in scadenza nel 2029, al 99,556% del valore nominale. Le obbligazioni saranno inizialmente emesse da PHH Escrow Issuer, una sussidiaria di PHH. I proventi, insieme a ulteriore liquidità, saranno trattenuti in escrow in attesa di condizioni, inclusa la conclusione della vendita da parte di Onity della sua partecipazione del 15% nel MSR Asset Vehicle a Oaktree Capital Management. Una volta soddisfatte le condizioni di escrow, PHH diventerà co-emittente, con Onity e alcune sussidiarie che assumeranno il ruolo di garanti. I proventi saranno utilizzati per rimborsare le Obbligazioni Senior di PHH Mortgage con un tasso del 7,875% in scadenza nel 2026 e le Obbligazioni Senior Second Lien di Onity con tassi del 12,00%/13,25% in scadenza nel 2027.
Onity Group (NYSE: ONIT) anunció la fijación del precio de 500 millones de dólares de Notas Senior al 9.875% con vencimiento en 2029 al 99.556% del valor nominal. Las notas serán emitidas inicialmente por PHH Escrow Issuer, una subsidiaria de PHH. Los ingresos, junto con efectivo adicional, se mantendrán en un depósito en espera de condiciones que incluyen la finalización de la venta de Onity de su participación del 15% en MSR Asset Vehicle a los fondos de Oaktree Capital Management. Una vez que se cumplan las condiciones de la cuenta de depósito, PHH se convertirá en co-emisor, con Onity y ciertas subsidiarias como garantes. Los ingresos se utilizarán para redimir las Notas Senior de PHH Mortgage al 7.875% con vencimiento en 2026 y las Notas Senior Second Lien de Onity con tasas del 12.00%/13.25% con vencimiento en 2027.
Onity Group (NYSE: ONIT)은 5억 달러의 9.875% 지급우선채권(2029년 만기)을 99.556%의 원금으로 가격을 책정했다고 발표했습니다. 채권은 PHH Escrow Issuer에 의해 초기 발행되며, 이는 PHH의 자회사입니다. 수익금은 추가 현금과 함께 Onity가 MSR 자산 차량에서 Oaktree Capital Management 펀드에 대한 15% 지분 매각을 완료할 때까지 에스크로에 보관됩니다. 에스크로 조건이 충족되면, PHH는 공동 발행자가 되고 Onity 및 특정 자회사는 보증인이 됩니다. 수익금은 PHH 모기지의 7.875% 지급우선채권(2026년 만기)과 Onity의 12.00%/13.25% 지급우선 제2 담보 채권(2027년 만기)을 상환하는 데 사용될 것입니다.
Onity Group (NYSE: ONIT) a annoncé la fixation du prix de 500 millions de dollars d'Obligations Senior à 9,875% arrivant à échéance en 2029 à 99,556% de la valeur nominale. Les obligations seront initialement émises par PHH Escrow Issuer, une filiale de PHH. Les fonds, ainsi que des liquidités supplémentaires, seront conservés en séquestre en attendant des conditions, y compris la finalisation de la vente par Onity de sa participation de 15% dans le MSR Asset Vehicle à Oaktree Capital Management. Une fois les conditions de séquestre remplies, PHH deviendra co-émissaire, avec Onity et certaines filiales jouant le rôle de garants. Les fonds seront utilisés pour racheter les Obligations Senior de PHH Mortgage à 7,875% arrivant à échéance en 2026 et les Obligations Senior Second Lien d'Onity à 12,00%/13,25% arrivant à échéance en 2027.
Onity Group (NYSE: ONIT) gab die Preisgestaltung für 500 Millionen US-Dollar von 9,875% Senior Notes mit Fälligkeit 2029 zu 99,556% des Nennwerts bekannt. Die Anleihen werden zunächst von PHH Escrow Issuer, einer Tochtergesellschaft von PHH, ausgegeben. Die Erlöse, zusammen mit zusätzlichen Mitteln, werden in Treuhand gehalten, bis Bedingungen erfüllt sind, einschließlich des Abschlusses von Onitys Verkauf seiner 15% Beteiligung am MSR Asset Vehicle an Oaktree Capital Management Fonds. Bei Erfüllung der Treuhandbedingungen wird PHH Co-Emittent, während Onity und bestimmte Tochtergesellschaften als Bürgen auftreten. Die Erlöse werden verwendet, um die 7,875% Senior Notes von PHH Mortgage mit Fälligkeit 2026 und die 12,00%/13,25% Senior Second Lien Notes von Onity mit Fälligkeit 2027 einzulösen.
- Refinancing of existing debt with new notes indicates strong market access
- Sale of 15% ownership in MSR Asset Vehicle to generate additional cash
- New notes carry higher interest rate (9.875%) compared to existing notes (7.875%)
- Additional debt burden could increase financial leverage
Insights
This debt refinancing marks a significant financial restructuring for Onity Group. The new
The transaction's complex structure, involving an escrow mechanism and multiple parties, suggests careful risk management. The pricing at
WEST PALM BEACH, Fla., Oct. 23, 2024 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity”), a leading non-bank mortgage servicer and originator, today announced that PHH Escrow Issuer LLC (“Escrow Issuer”), a wholly-owned special purpose subsidiary of PHH Corporation (“PHH”), priced the previously announced offering of
The Notes will initially be issued by Escrow Issuer. The net proceeds from the sale of the Notes, together with additional cash from Onity, are expected to be placed into escrow pending the satisfaction of certain conditions, including, but not limited to, the consummation of the recently announced sale by Onity of its
Upon their release from escrow, the net proceeds from the offering will be used, together with the net proceeds from the MAV Sale and cash on hand, to redeem all of PHH Mortgage Corporation’s outstanding
The Notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction.
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A of the Securities Act and to non-U.S. persons outside of the United States in compliance with Regulation S of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of, any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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.
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 statements relating to the closing of the offering of the Notes by Escrow Issuer, the satisfaction of the escrow conditions, including, but not limited to, the MAV Sale, and the ultimate use of the proceeds from the Notes offering. We cannot provide any assurance that these events will occur. 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, but not limited to, that the closing of the offering may not occur or, if the offering does close into escrow, that the conditions to the release of the escrowed funds from escrow, including the consummation of the MAV Sale, may not occur. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.
For Further Information Contact:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com
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