By Paul A. Harris
Portland, Ore., Feb. 26 – Ocwen Financial Corp. priced a $400 million issue of PHH Mortgage Corp. 7 7/8% five-year senior secured notes (B2/B-) at 99.486 to yield 8% on Friday, according to market sources.
The yield printed in the middle of yield talk in the 8% area. Initial guidance was in the low 8% area.
Demand for as much as half the deal came from asset-backed accounts, a market source said.
Barclays was the lead bookrunner. Joint bookrunners were Credit Suisse Securities (USA) LLC and Jefferies LLC.
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.
| Issuer: | PHH Mortgage Corp.
|
| Amount: | $400 million
|
| Maturity: | March 15, 2026
|
| Securities: | Senior secured notes
|
| Lead bookrunner: | Barclays
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC and Jefferies LLC
|
| Co-managers: | Keefe, Bruyette & Woods, Inc., B. Riley FBR, Inc. and BTIG, LLC
|
| Coupon: | 7 7/8%
|
| Price: | 99.486
|
| Yield: | 8%
|
| Spread: | 722 bps
|
| Call protection: | Two years
|
| Trade date: | Feb. 26
|
| Settlement date: | March 4
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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