Ocwen plans $575 million term loan for purchase of Litton Loan

By Sara Rosenberg

New York, June 6 - Ocwen Financial Corp. has received a commitment for a $575 million senior secured term loan to help fund its acquisition of Litton Loan Servicing LP, according to an 8-K filed with the Securities and Exchange Commission.

Barclays Bank plc is the lead bank on the deal.

Under the agreement, Ocwen is buying Litton, a provider of servicing and subservicing of primarily non-prime residential mortgage loans, from Goldman Sachs Group Inc. for a base purchase price of $263.7 million in cash.

In addition, subject to adjustments based on outstanding servicer advances at closing, Ocwen will pay $337.4 million to retire a portion of the outstanding debt on an existing advance facility at Litton that was provided by Goldman.

The transaction will result in the acquisition by Ocwen of a servicing portfolio of $41.2 billion in unpaid principal balance of primarily non-prime residential mortgage loans as of March 31, and the servicing platform of the business based in Houston and Dallas.

Closing is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other conditions.

Ocwen is an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services.

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