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Ocwen Financial plans $1.2 billion term loan for acquisitions
By Sara Rosenberg
New York, Dec. 12 - Ocwen Financial Corp. expects to get a new $1.2 billion senior secured term loan to help fund its acquisitions of Residential Capital LLC and Homeward Residential Holdings Inc., and to refinance existing debt, according to an 8-K recently filed with the Securities and Exchange Commission.
Barclays provided the term loan commitment, which is actually for up to $1.5 billion of financing.
Ocwen is buying Residential Capital's mortgage servicing and origination businesses with Walter Investment Management Corp. for about $3 billion.
Walter Investment, a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio owner, will be getting the Fannie Mae mortgage servicing rights portion of Residential Capital's servicing portfolio, as well as the origination and capital markets platform.
Closing is expected in the first quarter of 2013, subject to customary conditions, including the approval of Freddie Mac, Fannie Mae and various government agencies.
As for Homeward, a residential mortgage loan servicing and origination company, it is being acquired from WL Ross & Co. LLC for around $588 million in cash and $162 million in Ocwen convertible preferred stock.
Closing is expected by year-end, subject to regulatory approvals.
Ocwen is an Atlanta-based provider of residential and commercial loan servicing, special servicing and asset management services.
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