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Ocwen amends senior secured term loan, makes $17 million paydown
By Marisa Wong
Madison, Wis., April 17 – Ocwen Financial Corp. announced that it has entered into an amendment to its senior secured term loan, which will become effective on April 20.
Among other things, the amendment removes the requirement that Ocwen’s financial statements and the related audit report be unqualified as to going concern for the 2014 fiscal year. The amendment also extends the required time period for delivery of the 2014 audited financial statements to May 29, according to a press release.
As previously disclosed, the company is continuing to prepare information to demonstrate its ability to operate as a going concern and to deliver this information to its auditor for the purposes of its audit for the year ended Dec. 31.
Following this amendment and other amendments to Ocwen’s debt agreements, no defaults will occur in the event that the company’s auditor includes disclosure in its 2014 audit report relating to the company’s ability to operate as a going concern.
Ocwen also announced that it repaid $17 million of its senior secured term loan on Friday, bringing the total repayment to $91 million in the last three weeks.
“We appreciate the confidence our lenders have shown in the plan we have put forth,” chief executive officer Ron Faris said in the release.
“We have completed our first significant sale and transfer of agency servicing rights and used all of the net sale proceeds received to date to repay a portion of our [term loan]. We expect to receive additional proceeds in accordance with the terms of the transaction.”
Based in Atlanta, Ocwen provides mortgage loans and loan modification services in the United States, India and the Philippines.
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