Transaction Grows Newrez’s Third-Party
Servicing Business to $180 Billion
Rithm Capital Corp. (NYSE: RITM) (“Rithm Capital”), an asset
manager focused on the real estate and financial services
industries, today announced it has entered into a definitive
agreement with Computershare Limited (ASX: CPU) (“Computershare”)
to acquire Computershare Mortgage Services Inc. and certain
affiliated companies, including Specialized Loan Servicing LLC
(“SLS”), for a purchase price of approximately $720 million.
The acquisition includes approximately $136 billion in unpaid
principal balance (UPB) of mortgage servicing rights, of which $85
billion is third-party servicing, along with SLS’s origination
services business. Following the close of the transaction, SLS’s
portfolio and operations will be transitioned to and managed by
Newrez LLC (“Newrez”), a Rithm portfolio company.
“We are thrilled to welcome SLS to the Newrez family. Our track
record of acquisitions in the mortgage servicing space continues to
deliver value not only for our shareholders, but also for the
millions of consumers we serve,” said Michael Nierenberg, Chairman,
Chief Executive Officer and President of Rithm Capital.
“The addition of SLS continues to grow our best-in-class special
servicing business and adds more clients and homeowners to the
Newrez platform,” said Baron Silverstein, President of Newrez. “It
further strengthens our origination and servicing channels, both of
which are designed to deliver a customer experience that
prioritizes a successful homeownership journey.”
“Rithm has strong mortgage industry credentials and the ability
to bring capital to scale the business further. With its track
record of successful M&A execution and integration, we expect a
smooth transition for the business and our customers,” said Stuart
Irving, CEO and President of Computershare.
Financing and Transaction Details
Rithm intends to finance the transaction through a mix of
existing cash and available liquidity on the balance sheet, as well
as additional MSR financing.
The transaction remains subject to customary closing conditions,
including regulatory approvals. Completion is expected to take
place in the first half of 2024.
For more information visit https://www.rithmcap.com/.
About Rithm Capital
Rithm Capital is an asset manager focused on the real estate and
financial services industries. Rithm Capital’s investments in
operating entities include leading origination and servicing
platforms held through its wholly-owned subsidiaries, Newrez LLC,
Caliber Home Loans Inc. and Genesis Capital LLC, as well as
investments in affiliated businesses that provide residential and
commercial real estate related services. The Company seeks to
provide attractive risk-adjusted returns across interest rate
environments. Since inception in 2013, Rithm Capital has delivered
approximately $4.7 billion in dividends to shareholders. Rithm
Capital is organized and conducts its operations to qualify as a
real estate investment trust (REIT) for federal income tax purposes
and is headquartered in New York City.
About Newrez
Newrez is a leading mortgage company that combines mortgage
origination and servicing to provide a customer-first journey and
helps our customers make smart moves throughout the lifetime of
their mortgage loans. Differentiated by its origination platform,
the Company provides customers with unparalleled lending options to
purchase and refinance. Its servicing business services loans on
behalf of Newrez customers and includes third-party servicing
brand, Shellpoint Mortgage Servicing. Founded in 2008, Newrez is
headquartered in Fort Washington, Pennsylvania and is a member of
the Rithm Capital Family of Companies. Caliber Home Loans, part of
the Newrez Family of Companies, is also a proven leader in the U.S.
mortgage market with a diversified, customer-centric,
purchase-focused platform with headquarters in Coppell, Texas.
About Computershare Limited (CPU)
Computershare (ASX: CPU) is a global market leader in transfer
agency and share registration, employee equity plans, mortgage
servicing, proxy solicitation and stakeholder communications. We
also specialize in corporate trust and a range of other diversified
financial and governance services.
Founded in 1978, Computershare is renowned for its expertise in
high integrity data management, high volume transaction processing
and reconciliations, payments and stakeholder engagement. Many of
the world’s leading organizations use us to streamline and maximize
the value of relationships with their investors, employees,
creditors and customers.
Computershare is represented in all major financial markets and
has over 14,000 employees worldwide.
For more information, visit www.computershare.com
Cautionary Note Regarding Forward-Looking Statements
Certain information in this press release may constitute
“forward-looking statements” made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are not historical facts. They represent
management’s current expectations regarding future events and are
subject to a number of trends and uncertainties, many of which are
beyond Rithm Capital’s control, which could cause actual results to
differ materially from those described in the forward-looking
statements. Accordingly, you should not place undue reliance on any
forward-looking statements contained herein. These risks and
factors include, but are not limited to, the risks relating to the
transaction, including in respect of the satisfaction of closing
conditions and the timing thereof; unanticipated difficulties
financing the transaction; unexpected challenges related to the
integration of SLS’s businesses and operations; changes in general
economic and/or industry specific conditions; difficulties in
obtaining governmental and other third party consents in connection
with the transaction; unanticipated expenditures relating to or
liabilities arising from the transaction or the acquired
businesses; uncertainties as to the timing of the transaction;
litigation or regulatory issues relating to the transaction or the
acquired business; the impact of the transaction on relationships
with, and potential difficulties retaining, employees, customers
and other third parties; and the inability to obtain, or delays in
obtaining, expected benefits from the transaction.
For a discussion of some of the risks and important factors that
could affect such forward-looking statements, see the sections
entitled “Cautionary Statements Regarding Forward Looking
Statements,” “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in Rithm
Capital’s most recent annual and quarterly reports and other
filings filed with the U.S. Securities and Exchange Commission,
which are available on Rithm Capital’s website (www.rithmcap.com).
New risks and uncertainties emerge from time to time, and it is not
possible for Rithm Capital to predict or assess the impact of every
factor that may cause its actual results to differ from those
contained in any forward-looking statements. Forward-looking
statements contained herein speak only as of the date of this press
release, and Rithm Capital expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in Rithm
Capital’s expectations with regard thereto or change in events,
conditions or circumstances on which any statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20231001340340/en/
Rithm
Investor Relations 212-850-7770 IR@RithmCap.com
Media Jon Keehner / Sarah Salky Joele Frank, Wilkinson
Brimmer Katcher (212) 355-4449 ritm-jf@joelefrank.com
Newrez
Media Zach Pardes Chief Marketing Officer 212-850-5083
publicrelations@newrez.com
Computershare
Michael Brown Investor Relations Ph +61 (0) 400 24 8080
michael.brown@computershare.com.au
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