Ocwen Financial sets Tuesday launch for $575 million term loan

By Sara Rosenberg

New York, July 14 - Ocwen Financial Corp. has scheduled a bank meeting for Tuesday at 1 p.m. ET to launch its proposed $575 million senior secured term loan, according to a market source.

Barclays Capital Inc. is the sole lead bank on the deal.

Proceeds will be used to help fund the acquisition of Litton Loan Servicing LP, 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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