Ocwen Financial Announces Amendment to Senior Secured Term Loan
April 17 2015 - 5:42PM
Ocwen Financial Corporation, (NYSE:OCN)
("Ocwen" or the "Company"), a leading financial
services holding company, today announced that it has entered into
an amendment to its Senior Secured Term Loan (SSTL) which will
become effective on April 20, 2015. Among other things, the
amendment (i) removes, with respect to the 2014 fiscal year, the
requirement that Ocwen's financial statements and the related audit
report must be unqualified as to going concern and (ii) extends the
required time period for delivery of the 2014 audited financial
statements to May 29, 2015.
As previously disclosed, the Company continues to prepare
information to demonstrate the Company's ability to operate as a
going concern and to provide such information to its auditor for
the purposes of its audit of the Company's financial statements for
the year ended December 31, 2014. Following the execution of this
amendment and other amendments to the Company's debt agreements, no
defaults will occur in the event that the Company's auditor
includes disclosure in its 2014 audit report relating the Company's
ability to operate as a going concern.
Ocwen also announced that it repaid $17 million of its SSTL
today, bringing the total repayment to $91 million in the last 3
weeks.
"We appreciate the confidence our lenders have shown in the plan
we have put forth," said Ron Faris, Chief Executive Officer of
Ocwen. "We have completed our first significant sale and transfer
of agency servicing rights and used all of the net sale proceeds
received to date to repay a portion of our SSTL.We expect to
receive additional proceeds in accordance with the terms of the
transaction."
About Ocwen Financial Corporation
Ocwen Financial Corporation is a financial services holding
company which, through its subsidiaries, is engaged in the
servicing and origination of mortgage loans. Ocwen is headquartered
in Atlanta, Georgia, with offices throughout the United States and
support operations in India and the Philippines. Utilizing
proprietary technology, global infrastructure, and superior
training and processes, Ocwen provides solutions that help
homeowners and make our clients' loans worth more. Ocwen may post
information that is important to investors on its website
(www.Ocwen.com).
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. Forward-looking
statements involve a number of assumptions, risks and uncertainties
that could cause actual results to differ materially.
Important factors that could cause actual results to differ
materially from those suggested by the forward-looking statements
include, but are not limited to, the following: adverse effects on
our business as a result of recent regulatory settlements;
reactions to the announcement of such settlements by key
counterparties; increased regulatory scrutiny and media attention,
due to rumors or otherwise; uncertainty related to claims,
litigation and investigations brought by government agencies and
private parties regarding our servicing, foreclosure, modification
and other practices; any adverse developments in existing legal
proceedings or the initiation of new legal proceedings; our ability
to effectively manage our regulatory and contractual compliance
obligations; our ability to execute on our strategy to reduce the
size of our Agency servicing portfolio; the adequacy of our
financial resources, including our sources of liquidity and ability
to fund and recover advances, repay borrowings and comply with debt
covenants; our servicer and credit ratings as well as other actions
from various rating agencies, including the impact of recent
downgrades of our servicer and credit ratings; volatility in our
stock price; the characteristics of our servicing portfolio,
including prepayment speeds along with delinquency and advance
rates; our ability to contain and reduce our operating costs; our
ability to successfully modify delinquent loans, manage
foreclosures and sell foreclosed properties; uncertainty related to
legislation, regulations, regulatory agency actions, government
programs and policies, industry initiatives and evolving best
servicing practices; as well as other risks detailed in Ocwen's
reports and filings with the Securities and Exchange Commission
(SEC), including its annual report on Form 10-K/A for the year
ended December 31, 2013 (filed with the SEC on 08/18/14) and its
quarterly report on Form 10-Q for the quarter ended September 30,
2014 (filed with the SEC on 10/31/14). Anyone wishing to understand
Ocwen's business should review its SEC filings. Ocwen's
forward-looking statements speak only as of the date they are made
and, except for our ongoing obligations under the U.S. federal
securities laws, we undertake no obligation to update or revise
forward-looking statements whether as a result of new information,
future events or otherwise.
CONTACT: Investors:
Stephen Swett
T: (203) 614-0141
E: shareholderrelations@ocwen.com
Media:
John Lovallo
T: (917) 612-8419
E: jlovallo@levick.com
Dan Rene
T: (202) 973 -1325
E:drene@levick.com
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