Walter greenshoe exercised, convertibles increase to $290 million

By Ashley Montgomery

Kansas City, Kan., Oct. 23 - Walter Investment Management Corp. said the underwriters on its offering of 4.5% convertible senior subordinated notes exercised their full $25 million overallotment option.

The over-allotment option brings the total amount of the notes to $290 million.

As previously reported, the company priced $265 million of the convertibles, which are due in 2019, on Oct. 17.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Bank of America Merrill Lynch and Barclays were joint bookrunners for the note offering. RBS Securities Inc. was a co-manager.

Walter also announced Tuesday that underwriters on its common stock offering exercised their over-allotment option in full. This brings the total stock sale to 6.9 million shares at $42 per share, or $289.8 million.

The company said proceeds from the notes would be used to repay its second-lien senior secured term loan. Stock proceeds will be used to fund an acquisition of Reverse Mortgage Solutions Inc. capital stock, to enhance liquidity, for working capital and for general corporate purposes.

Walter is a Tampa. Fla.-based asset manager and mortgage services and portfolio owner.

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