Ditech seeks waiver of facility’s financial covenants through Q4 2019

By Marisa Wong

Morgantown, W.Va., March 20 – Ditech Holding Corp. is proposing an amendment to its second amended and restated credit agreement dated Feb. 9 with Credit Suisse AG as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The company is requesting a waiver of the first-lien leverage ratio and the interest expense coverage ratio covenants for the period from the first quarter of 2018 through the fourth quarter of 2019.

In exchange, the company is offering to amend the credit agreement to require an additional incremental minimum paydown of at least $40 million by Dec. 31, 2018, according to a lender presentation.

The company would make the additional paydown using proceeds from asset sales or corporate cash.

Ditech is a mortgage servicer, asset manager and portfolio owner based in Fort Washington, Pa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.