Ocwen Financial Announces Pricing of $500 Million OMART Servicing Advance Securitization
August 04 2016 - 5:30AM
Ocwen Financial Corporation, (NYSE:OCN)
(“Ocwen” or the “Company”), a leading financial
services holding company, announced the pricing, on August 3, 2016,
of $265 million in 2-year fixed rate asset-backed term notes with a
weighted average fixed interest rate of 2.769% and $235 million in
3-year fixed rate asset-backed term notes with a weighted average
fixed interest rate of 2.993% (together the “Term Notes”) to be
issued by Ocwen Master Advance Receivables Trust (“OMART”). The
issuance and sale of the Term Notes is subject to customary closing
conditions and is expected to close on August 12, 2016. The net
proceeds from the Term Notes will be used prepay $500 million of
1-year fixed rate asset-backed term notes coming due in OMART later
this year that have a weighted average fixed interest rate of
2.781%.
The Term Notes are secured by servicing advance
receivables associated with the Company’s non-agency servicing
portfolio, and will be issued in various credit classes with
expected ratings by Standard & Poor’s from AAA(sf) to
BBB(sf).
The Term Notes have not been registered under
the Securities Act of 1933, as amended (the “Securities Act”), or
any state securities laws. Accordingly, the Term Notes are being
offered and sold only to “qualified institutional buyers” (as
defined in Rule 144A under the Securities Act) and outside the
United States to non-U.S. persons in offshore transactions in
accordance with Regulation S under the Securities Act. Therefore,
the Term Notes will be subject to restrictions on transferability
and resale, and may not be transferred or resold absent an
effective registration statement or an applicable exemption from
such registration requirements of the Securities Act.
This press release does not constitute an offer
to sell or solicitation of an offer to purchase with respect to the
Term Notes or other securities, nor shall there be any sale of the
Term Notes in any state or jurisdiction in which such offer,
solicitation or purchase would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About Ocwen Financial
Corporation
Ocwen Financial Corporation is a financial
services holding company which, through its subsidiaries,
originates and services loans. We are headquartered in West Palm
Beach, Florida, with offices throughout the United States and in
the U.S. Virgin Islands and operations in India and the
Philippines. We have been serving our customers since 1988. We may
post information that is important to investors on our
website (www.Ocwen.com).
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.
These forward-looking statements may be identified by a reference
to a future period or by the use of forward-looking
terminology. Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. Our
business has been undergoing substantial change which has magnified
such uncertainties. Readers should bear these factors in mind when
considering such statements and should not place undue reliance on
such statements. Forward-looking statements involve a number of
assumptions, risks and uncertainties that could cause actual
results to differ materially. In the past, actual results have
differed from those suggested by forward looking statements and
this may happen again.
Important factors that could cause actual
results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, the
following: our servicer and credit ratings as well as other actions
from various rating agencies, including the impact of downgrades of
our servicer and credit ratings; adverse effects on our business as
a result of regulatory investigations or settlements; reactions to
the announcement of such investigations or settlements by key
counterparties; increased regulatory scrutiny and media attention;
uncertainty related to claims, litigation and investigations
brought by government agencies and private parties regarding our
servicing, foreclosure, modification and other practices, including
uncertainty related to past, present or future investigations and
settlements with state regulators, the Consumer Financial
Protection Bureau, State Attorneys General, the Securities and
Exchange Commission (SEC), the Departments of Justice or Housing
and Urban Development and actions brought under the False Claims
Act by private parties on behalf of the United States of America
regarding incentive and other payments made by governmental
entities; any adverse developments in existing legal proceedings or
the initiation of new legal proceedings; our ability to effectively
manage our regulatory and contractual compliance obligations; our
ability to contain and reduce our operating costs, including our
ability to successfully execute on our cost improvement initiative;
the adequacy of our financial resources, including our sources of
liquidity and ability to sell, fund and recover advances, repay
borrowings and comply with debt covenants, including the financial
and other covenants contained in them; volatility in our stock
price; the characteristics of our servicing portfolio, including
prepayment speeds along with delinquency and advance rates; our
ability to successfully modify delinquent loans, manage
foreclosures and sell foreclosed properties; uncertainty related to
legislation, regulations, regulatory agency actions, government
programs and policies, industry initiatives and evolving best
servicing practices; as well as other risks detailed in Ocwen’s
reports and filings with the SEC, including its annual report on
Form 10-K for the year ended December 31, 2015 and its current and
quarterly reports since such date. Anyone wishing to understand
Ocwen’s business should review its SEC filings. Ocwen’s
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:
Investors: |
Media: |
Stephen Swett |
John Lovallo |
Dan Rene |
T: (203) 614-0141 |
T: (917) 612-8419 |
T: (202) 973 -1325 |
E:
shareholderrelations@ocwen.com |
E:
jlovallo@levick.com |
E: drene@levick.com |
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