Ocwen Financial starts roadshow for $400 million five-year secured notes; whisper low 8% area

By Paul A. Harris

Portland, Ore., Feb. 24 – Ocwen Financial Corp. began a roadshow on Wednesday for a $400 million offering of five-year senior secured notes (expected ratings B2/B-), according to market sources.

The Rule 144A and Regulation S for life notes, which were set to kick off on a late-Wednesday morning conference call with investors, have initial guidance in the low 8% area and are expected to price on Friday.

Barclays is the lead bookrunner. Credit Suisse Securities (USA) LLC and Jefferies LLC are the joint bookrunners.

The notes come with two years of call protection and feature a two-year 35% equity clawback at par plus the coupon and a 101% poison put.

The issuing entity will be PHH Mortgage Corp., a subsidiary of Ocwen Financial.

The West Palm Beach, Fla.-based non-bank mortgage lender plans to use the proceeds to refinance its term loan, its second-lien notes and the PHH notes and to add cash to the balance sheet.

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