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Walter Investment to launch $700 million credit facility on Friday
By Sara Rosenberg
New York, Oct. 25 - Walter Investment Management Corp. will be holding a conference call at 10 a.m. ET on Friday to launch a $700 million five-year senior secured credit facility, according to a market source.
Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.
The facility consists of a $100 million revolver and a $600 million first-lien term loan, the source said.
Price talk on the term loan is Libor plus 475 basis points to 500 bps with a 1.25% Libor floor and an original issue discount of 99, the source continued.
The term loan has 101 repricing protection for one year and amortization of 5% per annum.
Covenants include maximum leverage and interest coverage ratios.
Proceeds will be used to repay all borrowings under an existing first-lien term loan that was sized at about $444 million at June 30, and for working capital and general corporate purposes.
"We believe the credit markets have improved and conditions are now favorable for us to pursue refinancing of our existing first lien term loan facility and revolving credit facility under improved terms. The refinancing of these facilities will provide financial flexibility to Walter Investment leaving us well positioned to capitalize on the accelerating opportunities in our $500 billion active pipeline," said Mark J. O'Brien, chairman and chief executive officer, in a news release.
Walter Investment is a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets.
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