Onity Group Announces Pricing of $200 Million of Senior Notes Due 2029
Rhea-AI Summary
Onity Group (NYSE: ONIT) announced that subsidiaries PHH Corporation and PHH Escrow Issuer LLC priced an additional issuance of 9.875% Senior Notes due 2029 for an aggregate principal amount of $200.0 million. The price to investors is 103.25% of principal, implying an effective yield (YTW) of 8.515% per annum. Closing is expected on January 30, 2026, subject to customary conditions. The new notes will form a single series with the existing $500.0 million of such notes issued on November 6, 2024, and 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 mortgage servicing rights indebtedness. The notes are offered under Rule 144A and Regulation S.
Positive
- Additional debt issuance of $200.0M
- Notes priced at 103.25%, indicating investor demand
- New notes will join existing $500.0M series into single series
Negative
- High coupon of 9.875% implies elevated borrowing cost
- Effective yield 8.515% per annum reflects expensive funding
- Offering limited to Rule 144A/Reg S investors, restricting liquidity
Key Figures
Market Reality Check
Peers on Argus
ONIT was modestly higher pre-news, while peers were mixed: VEL up 3.39%, BETR down 9.17%, LDI down 1.15%, and others flat. Only BETR appeared in momentum scans, suggesting stock-specific drivers rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 05 | Board appointment | Neutral | +0.4% | Appointment of Dawn C. Morris to the Board and noted future board changes. |
| Nov 25 | Investor conference | Neutral | +0.4% | CFO presentation and meetings at a leveraged finance investor conference. |
| Nov 18 | Strategic relationship | Positive | -3.2% | Strategic relationship and reverse MSR sale expected to strengthen liquidity and earnings. |
| Nov 18 | Asset sale | Positive | -3.2% | Finance of America acquisition of PHH reverse assets in an all-cash transaction. |
| Nov 06 | Earnings update | Positive | -2.9% | Q3 2025 results with strong originations, ROE outlook, and DTA allowance release plan. |
Recent history shows that more constructive strategic and earnings updates often preceded negative price reactions, while lower-impact governance and conference items saw mild gains.
Over the past few months, Onity has reported solid fundamentals, including Q3 2025 net income of $18 million, diluted EPS of $2.03, and originations of $12 billion. Strategic moves included selling reverse mortgage assets to Finance of America Reverse, expected to yield $100–$110 million in net proceeds, and repositioning PHH’s reverse business. Governance changes and conference participation rounded out updates. Today’s senior notes pricing adds another balance-sheet-focused step to this sequence of capital and portfolio actions.
Regulatory & Risk Context
The company has an active S-3/A shelf registration dated 2025-07-11 that remains in effect through 2028-07-11. It is currently noted as not effective for automatic use, and there is no recorded usage in the provided context, indicating no takedowns have been disclosed from this shelf so far.
Market Pulse Summary
This announcement details the pricing of an additional $200 million of 9.875% Senior Notes due 2029, priced at 103.25% for a 8.515% yield and forming a single series with an existing $500.0 million issue. Proceeds are designated for general corporate purposes, including repayment of MSR indebtedness, tying into prior disclosures about MSR assets and financing. Investors may track how this higher-coupon debt, servicing portfolio changes, and liquidity metrics evolve in upcoming filings and earnings updates.
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”) today announced that its subsidiaries, PHH Corporation and PHH Escrow Issuer LLC (the “Issuers”), priced their previously announced 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 mortgage servicing rights (MSR) indebtedness.
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 “will be” 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 closing of 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 closing of the offering may not occur 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 about the $200 million senior notes due 2029?
When will the Onity (ONIT) $200M note offering close?
How do the new PHH senior notes relate to the existing notes issued in 2024?
What will Onity (ONIT) use the net proceeds from the $200M offering for?
Are the Onity (ONIT) PHH senior notes registered under the Securities Act?
