Onity Group (ONIT) completed the sale of a 15% stake in MSR Asset Vehicle to Oaktree Capital Management for $49.5 million.
Proceeds from a $500 million debt offering were released from escrow concurrent with the closing of the deal, Onity said Tuesday in a statement.
Net proceeds from the sale and offering along with cash at hand will be used to redeem all of the PHH Mortgage unit's $289 million of outstanding 7.875% senior notes due 2026 and all of Onity's $285 million of outstanding 12%/13.25% senior second lien notes due 2027.
PHH Mortgage will continue to service existing and new mortgage servicing rights for MSR Asset Vehicle for a five-year initial term, Onity said.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.