Nationstar $2.75 billion three-part bridge to high yield to launch on Thursday lender call

By Paul A. Harris

Portland, Ore., April 18 – Nationstar Mortgage LLC is set to launch $2.75 billion of one-year senior unsecured bridge loans on a Thursday lender call scheduled to get underway at 3 p.m. ET, according to a syndicate source.

The deal is coming in three tranches:

• $1 billion at Libor plus 500 basis points, a 1% Libor floor and a 50 bps fee, to be taken out with five-year senior notes;

• $1 billion at Libor plus 550 bps, a 1% Libor floor and a 50 bps fee, to be taken out with eight-year senior notes; and

• $750 million at Libor plus 575 bps, a 1% Libor floor and a 50 bps fee, to be taken out with 10-year senior notes.

Bridge caps remain to be announced.

Commitments are due April 27.

Credit Suisse Securities (USA) LLC is the left bookrunner. Jefferies LLC, Deutsche Bank Securities Inc., HSBC, Goldman Sachs & Co., KKR Capital Markets and Morgan Stanley & Co. are the joint bookrunners.

Proceeds will be used to fund the merger between Nationstar Mortgage, a Dallas-based non-bank mortgage servicer, and WMIH Corp., a Seattle-based reinsurance business.

The initial borrower will be Wanda Merger Corp., which is to be merged into Nationstar, the continuing borrower.

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