Ocwen Loan Servicing talks $350 million term at Libor plus 700 bps

By Sara Rosenberg

New York, June 23 - Ocwen Loan Servicing LLC launched its $350 million senior secured term loan (B1) on Wednesday afternoon with price talk of Libor plus 700 basis points with a 2% Libor floor and an original issue discount of 98 to 99, according to a market source.

The loan includes 101 soft call protection for one year.

Barclays and Deutsche Bank are the joint bookrunners on the deal, with Barclays the lead arranger.

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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