Ocwen Financial launches $350 million term B at Libor plus 450 bps

By Sara Rosenberg

New York, June 18 – Ocwen Financial Corp. launched on Monday its $350 million six-year senior secured term loan B (B+) with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and a maximum first-lien loan to value ratio covenant equal to 45%, the source said.

In addition, the term loan has a springing maturity 91 days prior to the maturity of the second-lien notes due 2022 if more than $50 million is outstanding.

Barclays is the left lead arranger on the deal.

Commitments are due at noon ET on June 28, the source added.

Proceeds will be used to refinance the company’s existing senior secured term loan and fund cash to the balance sheet for general corporate purposes.

Ocwen is a West Palm Beach, Fla.-based non-bank mortgage servicer and originator.

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