Ocwen Financial launches $100 million incremental term loan

By Sara Rosenberg

New York, March 7 – Ocwen Financial Corp. held a lender call at 3 p.m. ET on Thursday to launch a $100 million incremental senior secured term loan due December 2020 that is talked at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.25, according to a market source.

The incremental term loan has amortization of 5% per annum and a maximum first-lien loan to value ratio covenant equal to 40%, the source said.

Barclays is the sole lead arranger on the deal.

Commitments are due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used for general corporate purposes, including repayment of the PHH Notes and a small portfolio or platform acquisition.

The borrower is Ocwen Loan Servicing LLC.

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

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