Ocwen looks to swap out some 6 5/8% notes due 2019 with 8 3/8% second-lien notes due 2022

By Susanna Moon

Chicago, Nov. 1 – Ocwen Financial Corp. is in negotiations with some holders to exchange its 6 5/8% senior notes due 2019 for new 8 3/8% second-lien notes due November 2022.

Ocwen is in negotiations with holders representing about $230 million of the 6 5/8% notes, according to a company notice.

In exchange, the holders would receive new notes to be issued by the company’s subsidiary Ocwen Loan Servicing LLC, guaranteed by the company and some of its subsidiaries, and secured on a second-priority basis with the same collateral that secures OLS’s senior secured term loan.

“While negotiations are ongoing, there can be no assurance that a final agreement will be reached,” the release noted.

The talks are being held with holders who are either qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S.

Ocwen is a financial services holding company based in West Palm Beach, Fla.

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