Walter Investment talks $500 million eight-year notes to yield in 7 7/8% area; pricing Thursday

By Paul A. Harris

Portland, Ore., Dec. 11 - Walter Investment Management Corp. talked its $500 million offering of eight-year senior notes (B3/B) to price with a yield in the 7 7/8% area, a syndicate source said.

Books close 5 p.m. ET Wednesday, except for West Coast accounts.

The deal is set to price on Thursday morning.

Barclays, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, RBS Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes, which mature in 2021, become callable after three years at par plus 75% of the coupon and feature a 101% poison put. They come with a standard high-yield covenant package.

The Tampa, Fla.-based asset management company plans to use the proceeds to finance the acquisition of mortgage servicing rights, to repay bank debt and for general corporate purposes.

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