Ocwen Loan Servicing to launch $350 million term loan on Wednesday

By Sara Rosenberg

New York, June 21 - Ocwen Loan Servicing LLC has scheduled a bank meeting for Wednesday afternoon to launch its proposed $350 million senior secured term loan, according to a market source.

Barclays is the lead bank on the deal and actually provided the company with a commitment for an up to $400 million term loan.

Proceeds will be used to help fund the acquisition of Barclays Bank plc's HomEq Servicing, a U.S. mortgage servicing business, for $1.3 billion in cash.

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.

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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