Onity Group Announces Proposed Offering of $475 Million of Senior Notes Due 2029
Onity Group Inc. (NYSE: ONIT), a leading non-bank mortgage servicer and originator, has announced plans to offer $475 million in Senior Notes due 2029 through its subsidiary PHH Escrow Issuer The proceeds will be held in escrow pending the completion of Onity's sale of its 15% stake in MSR Asset Vehicle to Oaktree Capital Management-affiliated funds. Upon meeting escrow conditions, PHH will become a co-issuer, with Onity and certain subsidiaries as guarantors.
The net proceeds, combined with the MAV Sale proceeds and cash on hand, will be used to redeem all outstanding 7.875% Senior Notes due 2026 of PHH Mortgage and all 12.00%/13.25% Senior Second Lien Notes due 2027 of Onity. The Notes are being offered only to qualified institutional buyers and non-U.S. persons in compliance with Securities Act regulations.
Onity Group Inc. (NYSE: ONIT), un importante servicer e originatore di mutui non bancari, ha annunciato piani per offrire 475 milioni di dollari in Note Senior con scadenza nel 2029 attraverso la sua controllata PHH Escrow Issuer. I proventi saranno detenuti in custodia in attesa del completamento della vendita del 15% delle azioni di Onity in MSR Asset Vehicle a fondi affiliati a Oaktree Capital Management. Una volta soddisfatte le condizioni di custodia, PHH diventerà un co-emittente, con Onity e alcune controllate quali garanti.
I proventi netti, combinati con i proventi della vendita di MAV e la liquidità disponibile, saranno utilizzati per rimborsare tutte le Note Senior 7.875% in scadenza nel 2026 di PHH Mortgage e tutte le Note Senior Second Lien 12.00%/13.25% in scadenza nel 2027 di Onity. Le Note sono offerte solo a compratori istituzionali qualificati e a persone non statunitensi in conformità con le normative sul Securities Act.
Onity Group Inc. (NYSE: ONIT), un destacado servidor y originador de hipotecas no bancarias, ha anunciado planes para ofrecer 475 millones de dólares en Notas Senior con vencimiento en 2029 a través de su filial PHH Escrow Issuer. Los ingresos se mantendrán en fideicomiso a la espera de la finalización de la venta del 15% de la participación de Onity en MSR Asset Vehicle a fondos afiliados a Oaktree Capital Management. Una vez cumplidas las condiciones del fideicomiso, PHH se convertirá en co-emisor, siendo Onity y ciertas filiales los garantes.
Los ingresos netos, combinados con los ingresos de la venta de MAV y el efectivo disponible, se utilizarán para redimir todas las Notas Senior 7.875% con vencimiento en 2026 de PHH Mortgage y todas las Notas Senior Second Lien 12.00%/13.25% con vencimiento en 2027 de Onity. Las Notas solo se ofrecen a compradores institucionales calificados y a personas no estadounidenses en cumplimiento con las regulaciones de la Ley de Valores.
Onity Group Inc. (NYSE: ONIT), 비은행 모기지 서비스 제공업체 및 차상장자, 에서 2029년 만기 senior note 4억7500만 달러를 자회사 PHH Escrow Issuer를 통해 제공할 계획을 발표했습니다. 자금은 Oaktree Capital Management 소속 펀드에 대한 Onity의 MSR 자산 차량 15% 지분 판매 완료를 기다리는 동안 에스크로에서 보유될 예정입니다. 에스크로 조건이 충족되면 PHH는 Onity와 일부 자회사가 보증인으로 참여하여 공동 발행자가 될 것입니다.
순수익은 MAV 판매 수익 및 보유 현금과 함께 사용되어 PHH Mortgage의 2026년 만기 7.875% Senior Note 및 Onity의 2027년 만기 12.00%/13.25% Senior Second Lien Note를 모두 상환하는 데 사용됩니다. 이 노트는 증권법 규정에 따라 자격을 갖춘 기관 구매자 및 비미국인에게만 제공됩니다.
Onity Group Inc. (NYSE: ONIT), un prestataire et un originateur de prêts hypothécaires non bancaires de premier plan, a annoncé son intention d'offrir 475 millions de dollars en Obligations Senior arrivant à échéance en 2029 via sa filiale PHH Escrow Issuer. Les produits seront conservés sous séquestre en attendant la finalisation de la vente par Onity de sa participation de 15% dans MSR Asset Vehicle à des fonds affiliés à Oaktree Capital Management. Dès que les conditions de séquestre seront remplies, PHH deviendra un co-émetteur, avec Onity et certaines filiales comme garants.
Les produits nets, combinés avec les produits de la vente MAV et la trésorerie disponible, seront utilisés pour racheter toutes les Obligations Senior 7,875% arrivant à échéance en 2026 de PHH Mortgage et toutes les Obligations Senior Second Lien 12,00%/13,25% arrivant à échéance en 2027 de Onity. Les Obligations sont offertes uniquement à des acheteurs institutionnels qualifiés et à des personnes non américaines conformément aux réglementations de la loi sur les valeurs mobilières.
Onity Group Inc. (NYSE: ONIT), ein führender nicht-bancaire Hypothekendienstleister und -geber, hat Pläne angekündigt, 475 Millionen Dollar an Senior Notes mit Fälligkeit 2029 über seine Tochtergesellschaft PHH Escrow Issuer anzubieten. Die Erlöse werden treuhänderisch verwahrt, bis der Verkauf von Onitys 15% Anteil am MSR Asset Vehicle an mit Oaktree Capital Management verbundene Fonds abgeschlossen ist. Nach Erfüllung der Treuhandbedingungen wird PHH zum Mit-Emittenten und Onity sowie bestimmte Tochtergesellschaften treten als Garanten auf.
Die Nettoerlöse, zusammen mit den Erlösen aus dem MAV-Verkauf und den vorhandenen Mitteln, werden verwendet, um alle ausstehenden 7.875% Senior Notes mit Fälligkeit 2026 von PHH Mortgage und alle 12.00%/13.25% Senior Second Lien Notes mit Fälligkeit 2027 von Onity einzulösen. Die Notes werden nur an qualifizierte institutionelle Käufer und Nicht-US-Personen gemäß den Vorschriften des Wertpapiergesetzes angeboten.
- Refinancing of existing debt with potentially lower interest rates
- Strengthening of financial position through strategic debt restructuring
- Potential improvement in cash flow management
- Increase in total debt by $475 million
- Potential dilution of existing shareholders' value
- Divestment of 15% ownership in MSR Asset Vehicle
Insights
This offering of
Key points to consider:
- The new notes are due in 2029, potentially extending the debt maturity profile.
- The proceeds will redeem all outstanding 7.875% Senior Notes due 2026 and 12.00%/13.25% Senior Second Lien Notes due 2027, which likely carry higher interest rates.
- The offering is contingent on the completion of the MAV Sale, indicating a strategic realignment of assets.
- The complex structure involving an escrow issuer suggests careful financial engineering to optimize the transaction.
While this refinancing could lead to cost savings, investors should monitor the new interest rate and terms when disclosed to fully assess the impact on Onity's future cash flows and profitability.
The legal structure of this offering is intricate and designed to protect both the company and investors. Key legal aspects include:
- Use of a special purpose subsidiary (Escrow Issuer) to initially issue the notes, providing an additional layer of security.
- Escrow arrangement pending satisfaction of specific conditions, including the MAV Sale, which mitigates risks for note purchasers.
- Planned transition of issuer status to PHH and addition of guarantors upon meeting escrow conditions, enhancing the notes' security.
- Compliance with Securities Act exemptions (Rule 144A and Regulation S), limiting the offering to qualified institutional buyers and non-U.S. persons.
This structure demonstrates sophisticated legal planning to facilitate the transaction while managing regulatory compliance and investor protections. However, investors should be aware that these notes are not registered securities, which may affect their liquidity and resale restrictions.
WEST PALM BEACH, Fla., Oct. 21, 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”), plans to offer
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 and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to the offering of the senior notes by PHH and the use of proceeds therefrom. 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, the fact that the size of the offering could change or that the offering could be terminated; or if the Notes are issued and sold, that the conditions to the release of the escrowed funds from escrow, including the consummation of the MAV Sale, will 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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