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Ocwen Loan Servicing plans $350 million term loan for HomeEq purchase
By Sara Rosenberg
New York, June 1 - Ocwen Loan Servicing LLC expects to issue a $350 million senior secured term loan in June to help fund its acquisition of Barclays Bank plc's HomEq Servicing, company officials said in a conference call on Tuesday.
The company declined to comment on anticipated pricing for the term loan.
As part of the agreement, Barclays has agreed to provide seller financing in the form of a $140 million bridge loan, which is expected to be replaced by the term loan, and a $905 million servicer advance facility.
Ocwen is buying HomEq, a U.S. mortgage servicing business, for $1.3 billion in cash.
As of March 31, HomEq was servicing mortgages with an unpaid principal balance of roughly $28 billion.
Closing on the acquisition is expected to take place in the third quarter, subject to customary conditions, including competition clearance.
Ocwen Loan Servicing is a subsidiary of Ocwen Financial Corp., a West Palm Beach, Fla.-based provider of residential and commercial loan servicing, special servicing and asset management services.
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