Walter Investment OK’d to guarantee financing, use cash collateral

By Caroline Salls

Pittsburgh, Dec. 5 – Walter Investment Management Corp. obtained court approval to guarantee $1.9 billion in warehouse financing and use cash collateral, both on an interim basis, according to an order filed with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for Dec. 21.

As previously reported, the financing will provide Walter and operating entities Ditech Financial LLC and Reverse Mortgage Solutions, Inc. with a facility, which is expected to convert into exit financing at the same size.

The lenders are Credit Suisse First Boston Mortgage Capital LLC, Credit Suisse AG, Cayman Islands Branch and Barclays Bank plc. Credit Suisse First Boston is the administrative agent.

Interest on a new forward origination facility and a new servicing advance facility is Libor plus 300 basis points, and interest on a new reverse mortgage facility is Libor plus 450 bps.

The financing will mature on the earlier of the effective date of the pre-packaged plan and 180 days from the bankruptcy filing date.

Walter is a Fort Washington, Pa., servicer and originator of mortgage loans and servicer of reverse mortgage loans. The company filed bankruptcy on Nov. 30 under Chapter 11 case number 17-13446.

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