Onity Group Announces Proposed Offering of $475 Million of Senior Notes Due 2029
Rhea-AI Summary
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.
Positive
- Refinancing of existing debt with potentially lower interest rates
- Strengthening of financial position through strategic debt restructuring
- Potential improvement in cash flow management
Negative
- Increase in total debt by $475 million
- Potential dilution of existing shareholders' value
- Divestment of 15% ownership in MSR Asset Vehicle
News Market Reaction – ONIT
In the trading session that priced this news, ONIT gained 0.20%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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
