Onity Group Announces Offering of $150 Million of Senior Notes Due 2029
Rhea-AI Summary
Onity Group (NYSE: ONIT) announced that subsidiaries PHH Corporation and PHH Escrow Issuer LLC launched an offering of $150.0 million aggregate principal amount of 9.875% Senior Notes due 2029. These PHH Senior Notes are an additional issuance that will form a single series with the $500.0 million of 9.875% Senior Notes originally issued on November 6, 2024, resulting in a combined series aggregate principal of $650.0 million.
The PHH Senior Notes are guaranteed on a senior secured basis by Onity and certain PHH subsidiaries, including PHH Mortgage Corporation and PHH Asset Services LLC. Net proceeds will be used for general corporate purposes, including repayment of certain indebtedness of PHH Mortgage Corporation and PHH Asset Services. The notes will not be registered under the Securities Act and are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
Positive
- Raises $150.0M in additional secured debt for corporate uses
- New issuance will form a single series with prior $500.0M, creating $650.0M total series
- Net proceeds designated for repayment of specified indebtedness of PMC and PAS
Negative
- High coupon of 9.875% implies significant annual interest cost
- Increases secured indebtedness by $150.0M, raising leverage on secured assets
- Securities are unregistered and offered only to QIBs/Reg S investors, limiting liquidity
News Market Reaction
On the day this news was published, ONIT declined 0.97%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
ONIT was modestly positive while key mortgage peers like BETR (-2.52%) and LDI (-2.59%) traded lower, indicating stock-specific dynamics rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 05 | Board appointment | Positive | +0.4% | Added experienced director while signaling upcoming board refresh in 2026. |
| Nov 25 | Investor conference | Positive | +0.4% | CFO participation in leveraged finance conference and webcast investor presentation. |
| Nov 18 | Strategic relationship | Positive | -3.2% | Strategic FAR relationship and sale of reverse MSRs to reposition reverse mortgage role. |
| Nov 18 | Asset sale deal | Positive | -3.2% | Finance of America all-cash acquisition of PHH reverse assets and subservicing pact. |
| Nov 06 | Earnings update | Positive | -2.9% | Q3 2025 results with higher originations and strong ROE outlook, plus Rithm update. |
Recent history shows several positive or strategic announcements followed by mixed to negative price reactions, suggesting the stock has sometimes sold off on good news.
Over the last few months, Onity reported solid Q3 2025 results on Nov 6, 2025, with positive profitability and growth metrics but a negative one-day reaction. On Nov 18, 2025, the company announced a strategic reverse mortgage servicing sale and related acquisition news, again seeing a decline. Later communications, including an investor conference appearance on Nov 25, 2025 and a board appointment on Jan 5, 2026, drew small positive moves. Today’s offering of $150 million senior notes fits into this sequence of capital and balance sheet actions.
Regulatory & Risk Context
The company has an active S-3/A shelf registration filed on 2025-07-11 with an expiration on 2028-07-11, which can facilitate future registered capital-raising transactions without specifying size here.
Market Pulse Summary
This announcement details an additional $150 million issuance of 9.875% senior notes due 2029 that will form a single series with the existing $500.0 million issue. Proceeds are earmarked for general corporate purposes, including repayment of certain PHH subsidiary debt, and the notes are offered under Rule 144A and Regulation S. Investors may track subsequent debt balances, interest expense trends, and further capital markets activity executed under the company’s shelf registration.
Key Terms
senior notes financial
rule 144a regulatory
regulation s regulatory
AI-generated analysis. Not financial advice.
WEST PALM BEACH, Fla., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that its subsidiaries PHH Corporation and PHH Escrow Issuer LLC (the “Issuers”) launched an offering of
The PHH Senior Notes being offered are an additional issuance of the Issuers’
The net proceeds from the offering will be used for general corporate purposes, including the repayment of certain indebtedness of PMC and PAS.
The PHH Senior 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 PHH Senior 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 financial services company providing mortgage servicing and originations 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 to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to 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. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology such as “look forward to” and references to goals, strategies, and agendas, although not all forward-looking statements contain these words. Forward-looking statements in this press release include statements relating to the offering of the PHH Senior Notes and the use of proceeds therefrom.
Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. 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 fact that the size of the offering could change or that the offering could be terminated. Onity’s forward-looking statements speak only as of the date they are made and Onity disclaims 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:
Valerie Haertel, VP, Investor Relations
(561) 570-2969
shareholderrelations@onitygroup.com
Media:
Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com
FAQ
What did Onity (ONIT) announce on January 26, 2026 about new debt?
How much aggregate principal will the PHH 2029 note series total after the offering?
What will Onity (ONIT) use the proceeds from the $150M 2029 notes for?
Are the PHH Senior Notes being registered for public resale?
Who guarantees the PHH Senior Notes issued by PHH subsidiaries?
