Entry into a Material Definitive Agreement.
On January 16, 2020, Nationstar Mortgage Holdings Inc. (the Issuer), a wholly-owned subsidiary of Mr. Cooper Group Inc. (the
Company), closed the previously announced offering (the Offering) of $600,000,000 aggregate principal amount of the Issuers 6.000% Senior Notes due 2027 (the Notes). The Issuer sold the Notes to the initial
purchasers in the Offering, which was exempt from the registration requirements of the Securities Act of 1933, as amended (the Securities Act). The Notes were offered for resale to purchasers reasonably believed to be qualified
institutional buyers as defined in Rule 144A under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.
The net proceeds from the Offering, together with cash on hand, will be used to redeem in full the outstanding 6.500% Senior Notes due 2021 and 6.500% Senior
Notes due 2022 issued by Nationstar Mortgage LLC and Nationstar Capital Corporation, each an indirect, wholly-owned subsidiary of the Company, and to pay related fees and expenses.
The Notes were issued pursuant to the Indenture, dated as of January 16, 2020 (the Indenture), among the Company, the Issuer, the subsidiary
guarantors party thereto and Wells Fargo Bank, National Association, as trustee (the Trustee). Interest on the Notes accrues beginning on January 16, 2020 at a rate of 6.000% per year. Interest on the Notes is payable semi-annually
on January 15 and July 15 of each year, commencing on July 15, 2020. The Notes mature on January 15, 2027.
The Indenture contains
customary terms, events of default and covenants for an issuer of non-investment grade debt securities. These covenants include limitations on, among other things, incurring additional debt or
issuing certain preferred shares, paying dividends on or making other distributions in respect of capital stock or making other restricted payments, making certain investments, selling or transferring certain assets, creating liens on certain assets
to secure debt, consolidating, merging, selling or otherwise disposing of all or substantially all assets, entering into certain transactions with affiliates and designating subsidiaries as unrestricted subsidiaries.
Prior to January 15, 2023, the Issuer may, at its option and on any one or more occasions, redeem some or all of the Notes at a make-whole price plus
accrued and unpaid interest to the redemption date.
Prior to January 15, 2023, the Issuer may, at its option and on any one or more occasions,
redeem up to 40% of the aggregate principal amount of the Notes with an amount equal to or less than the net proceeds from certain equity offerings at a redemption price of 106.000% plus accrued and unpaid interest to the redemption date.
On or after January 15, 2023, the Issuer may, at its option and on any one or more occasions, redeem some or all of the Notes at the applicable
redemption prices set forth in the Indenture, plus accrued and unpaid interest to the redemption date.
If a change of control (as defined in
the Indenture) occurs, the holders of the Notes may require the Issuer to purchase for cash all or a portion of their Notes at a purchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest to the repurchase
The Notes will be senior unsecured obligations of the Issuer and will rank senior in right of payment to any future subordinated indebtedness of
the Issuer, equally in right of payment with all existing and future senior indebtedness of the Issuer and effectively subordinated to any future secured indebtedness of the Issuer to the extent of the value of collateral securing such indebtedness.
The Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by the Company and each of Nationstars
existing and future wholly-owned domestic subsidiaries (other than certain excluded subsidiaries). The guarantees will be senior unsecured obligations of the guarantors and will rank senior in right of payment to any future subordinated indebtedness
of the guarantors, equally in right of payment with all existing and future senior indebtedness of the guarantors and effectively subordinated to any future secured indebtedness of the guarantors to the extent of the value of collateral securing
such indebtedness. The Notes and the guarantees will be structurally subordinated to the indebtedness and liabilities of the Companys subsidiaries that do not guarantee the Notes.