Ocwen Loan Servicing extends exchange offer for 6 5/8% notes to Dec. 2

By Angela McDaniels

Tacoma, Wash., Nov. 30 – Ocwen Financial Corp. subsidiary Ocwen Loan Servicing, LLC extended the exchange offer for its 6 5/8% senior notes due 2019 to 5 p.m. ET on Dec. 2 from 11:59 p.m. ET on Nov. 30, according to a company news release.

Investors had tendered $346.9 million principal amount, or 99.1%, of the notes as of 5 p.m. ET on Nov. 30.

As announced Nov. 1, Ocwen Loan Servicing is offering up to $350 million principal amount of newly issued 8 3/8% senior secured second-lien notes due 2022 in exchange for the 6 5/8% notes.

The total exchange amount consists of $950 principal amount of new second-lien notes for each $1,000 principal amount plus an early tender premium of $50 principal amount of new second-lien notes per $1,000 principal amount of notes tendered for exchange by 5 p.m. ET on Nov. 15, the early tender deadline.

Holders who tender their notes for exchange after the early deadline will receive $950 principal amount of new second-lien notes for each $1,000 principal amount.

The company also will pay accrued interest up to but excluding the settlement date.

The new notes will be jointly and severally guaranteed by Ocwen, Ocwen Mortgage Servicing, Inc., Homeward Residential Holdings, Inc., Homeward Residential, Inc. and Automotive Capital Services, Inc., all of which are wholly owned subsidiaries of Ocwen.

The new notes will be unsubordinated obligations of Ocwen Loan Servicing and the guarantors, respectively, and will be secured by a second-priority lien on all of the assets that secure the senior secured term loan. The lien on the collateral securing the new second-lien notes will be junior to the first-priority lien securing the senior secured term loan.

The exchange is being made only to holders who are qualified institutional buyers under Rule 144A or non-U.S. persons under Regulation S.

The information agent is D.F. King & Co., Inc. (212 269-5550, 800 431-9645, ocn@dfking.com or dfking.com/ocwen).

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

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