Walter Investment Management Corp. Completes Refinancing Of Senior
Secured Notes And Revolving Credit Facility
TAMPA, Fla., Dec. 3, 2012 /PRNewswire/ -- Walter
Investment Management Corp. (NYSE MKT: WAC) ("Walter Investment" or
the "Company") today announced that it completed the refinancing of
its senior secured debt.
Credit Suisse Securities (USA)
LLC, Morgan Stanley Senior Funding, Inc. and BofA Merrill Lynch
assisted the Company with the execution of a senior secured first
lien term loan facility in the aggregate principal amount of
$700 million and a senior secured
revolving credit facility in the aggregate principal amount of
$125 million. The facilities bear
interest at a rate per annum equal to, LIBOR plus 4.50%, with a
LIBOR "floor" of 1.25% and mature on November 28, 2017.
The company used the proceeds of the new term loan to (1) repay
all indebtedness outstanding under its existing first lien term
loan (approximately $425 million at
September 30, 2012), (2) pay related
transaction costs and expenses, (3) provide liquidity for potential
growth opportunities, including acquisitions, and for working
capital and general corporate purposes.
Mark J. O'Brien, Chairman and CEO
of Walter Investment said, "We are quite pleased to have completed
the refinancing of our existing first lien term loan facility and
revolving credit facility under the improved terms. The
refinancing of these facilities not only enables us to take
advantage of the lower rates available in the credit markets,
significantly lowering our interest expense, but also meaningfully
improves our financial flexibility leaving us well positioned to
capitalize on the opportunities in our $500
billion active pipeline."
About Walter Investment Management Corp.
Walter
Investment Management Corp. is an asset manager, mortgage servicer
and mortgage portfolio owner specializing in less-than-prime,
non-conforming and other credit-challenged mortgage assets. Based
in Tampa, Fla., the Company has
over 2,600 employees and services a diverse loan
portfolio. For more information about Walter Investment
Management Corp., please visit the Company's website at
www.walterinvestment.com.
Pipeline
The term "pipeline," when used in this release, refers to
opportunities or potential opportunities in the market for products
within our strategic profile that we have identified as targets to
add to our servicing portfolio through either the acquisition of
MSR or sub-servicing contracts. In each case we have
contacted the seller or its representative to register our
interest, or are currently engaged in discussions or negotiations
directly with the seller or its representative. The status of
"pipeline opportunities" varies from early stage contact through
exclusive negotiations. There can be no guarantee that any of
the opportunities in our pipeline will result in purchases or
contracts added by the Company.
Disclaimer and Cautionary Note Regarding Forward-Looking
Statements
This press release contains forward-looking statements,
including forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, but are not limited to,
statements concerning Walter Investment's plans, beliefs,
objectives, expectations and intentions and other statements that
are not historical or current facts. Forward-looking statements are
based on Walter Investment's current expectations and involve risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in such forward-looking
statements. Factors that could cause Walter Investment's results to
differ materially from current expectations include, but are not
limited to: the availability of MSRs and other investment
opportunities in our pipeline at acceptable prices, along with the
availability of any additional capital that may be necessary to
purchase MSRs or make other investments; U.S. competition for
investments; and other factors relating to our business in general
as detailed in Walter Investment's 2011 Annual Report on Form 10-K
and other periodic reports filed with the U.S. Securities and
Exchange Commission. In addition, these statements are based on a
number of assumptions that are subject to change. Accordingly,
actual results may be materially higher or lower than those
projected. The inclusion of such projections herein should not be
regarded as a representation by Walter Investment that the
projections will prove to be correct. This press release speaks
only as of this date. Walter Investment disclaims any duty to
update the information herein.
SOURCE Walter Investment Management Corp.