Ocwen Financial talks $400 million five-year secured notes to yield in 8% area; pricing Friday

By Paul A. Harris

Portland, Ore., Feb. 26 – Ocwen Financial Corp. talked $400 million offering of PHH Mortgage Corp. five-year senior secured notes (B2) to yield in the 8% area, according to market sources.

Official talk comes tight to initial guidance in the low 8% area.

Books close at 1 p.m. ET on Friday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

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, PHH Mortgage, is 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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