Mr. Cooper Group Inc. Announces Pricing of Offering of $650 Million of Senior Notes
December 02 2020 - 7:00AM
Business Wire
Mr. Cooper Group Inc. (NASDAQ: COOP) (“Mr. Cooper”) announced
the pricing of an offering by Nationstar Mortgage Holdings Inc., a
direct wholly-owned subsidiary of Mr. Cooper (“Nationstar”) of
$650,000,000 5.125% Senior Notes due 2030 (the “Notes”). The Notes
will bear interest at 5.125% per annum and will mature on December
15, 2030. Interest on the Notes will be payable semi-annually on
June 15 and December 15 of each year, beginning on June 15,
2021.
The offering is expected to close on or around December 4, 2020,
subject to customary closing conditions. It is expected that the
net proceeds of the offering, together with approximately $176
million of cash on hand, will be used to redeem all $750 million of
the outstanding 9.125% Senior Notes due 2026 issued by Nationstar,
including approximately $71 million of breakage costs and
approximately $5 million of certain related fees. The transaction
will result in a reduction in annual interest expense of
approximately $35 million. The Notes will be guaranteed on a joint
and several basis by Mr. Cooper and wholly-owned domestic
subsidiaries of Nationstar (other than certain excluded
subsidiaries).
The offering of the Notes was made in reliance upon an exemption
from the registration requirements of the Securities Act of 1933,
as amended (the “Securities Act”), in the United States only to
investors who are “qualified institutional buyers,” as that term is
defined in Rule 144A under the Securities Act, or outside the
United States pursuant to Regulation S under the Securities Act.
The Notes have not been registered under the Securities Act or the
securities laws of any other jurisdiction and may not be offered or
sold in the United States without registration or an applicable
exemption from registration requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of any
of the Notes in any jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such
jurisdiction.
Forward-Looking Statements
This press release may include information that could constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any such forward-looking
statements may involve risk and uncertainties that could cause
actual results to differ materially from any future results
encompassed within the forward-looking statements. Factors that
could cause or contribute to such differences include those matters
disclosed in Mr. Cooper’s Securities and Exchange Commission
filings. Past results of Mr. Cooper are not necessarily indicative
of future results. Mr. Cooper does not undertake any obligation to
update any forward-looking statement.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing,
origination and transaction-based services related principally to
single-family residences throughout the United States with
operations under its primary brands: Mr. Cooper® and Xome®. Mr.
Cooper is one of the largest home loan servicers in the country
focused on delivering a variety of servicing and lending products,
services and technologies. Xome provides technology and data
enhanced solutions to homebuyers, home sellers, real estate agents
and mortgage companies. For more information, visit
www.mrcoopergroup.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20201202005331/en/
Investor Contact: Kenneth Posner, SVP Strategic Planning and
Investor Relations (469) 426-3633 Shareholders@mrcooper.com Media
Contact: Christen Reyenga, VP Corporate Communications
MediaRelations@mrcooper.com
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