Ocwen Financial Announces Amendment to Senior Secured Term Loan
March 24 2016 - 6:52PM
Ocwen Financial Corporation, (NYSE:OCN)
(“Ocwen” or the “Company”), a financial services
holding company, today announced that it has entered into an
amendment to its Senior Secured Term Loan (SSTL), which will become
effective on March 28, 2016.
The key points of this amendment are:
- Permanently removes the consolidated total debt to consolidated
tangible net worth ratio, corporate leverage ratio, and interest
coverage ratio financial covenants.
- Maintains the loan-to-value ratio covenant at its current 40%
level throughout the remaining term of the SSTL.
- Limits the repurchase of (i) the Company’s common stock or
options to an amount not to exceed $20 million and (ii) the
Company’s 6.625% Senior Notes due 2019 to an amount not to exceed
$30 million. These limits may be refreshed if the Company makes
additional voluntary prepayments under the SSTL.
- Requires the Company to make a prepayment on the SSTL in an
amount equal to $6.3 million (for a total of $19.0 million) on each
of May 31, 2016, July 29, 2016 and September 30, 2016.
- Provides for certain clarifications, additions, and cleanup
items in the collateral value calculations.
“We appreciate the confidence our lenders have
shown in us,” said Ron Faris, President and CEO of Ocwen. “This
amendment provides us with additional flexibility under our
financial covenants, while providing our lenders additional early
principal payments on the SSTL and enhanced covenants regarding our
ability to repurchase our equity and unsecured debt.”
About Ocwen Financial
Corporation
Ocwen Financial Corporation is a financial
services holding company which, through its subsidiaries,
originates and services loans. We are headquartered in West Palm
Beach, Florida, with offices throughout the United States and in
the U.S. Virgin Islands and operations in India and the
Philippines. We have been serving our customers since 1988. We may
post information that is important to investors on our
website (www.Ocwen.com).
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Forward-looking statements by their nature
address matters that are, to different degrees, uncertain.
Forward-looking statements involve a number of assumptions, risks
and uncertainties that could cause actual results to differ
materially.
Important factors that could cause actual
results to differ materially from those suggested by the
forward-looking statements include, but are not limited to, the
following: our servicer and credit ratings as well as other actions
from various rating agencies, including the impact of downgrades of
our servicer and credit ratings; adverse effects on our business as
a result of recent regulatory settlements; reactions to the
announcement of such settlements by key counterparties; increased
regulatory scrutiny and media attention; uncertainty related to
claims, litigation and investigations brought by government
agencies and private parties regarding our servicing, foreclosure,
modification and other practices; any adverse developments in
existing legal proceedings or the initiation of new legal
proceedings; our ability to effectively manage our regulatory and
contractual compliance obligations; the adequacy of our financial
resources, including our sources of liquidity and ability to sell,
fund and recover advances, repay borrowings and comply with our
debt agreements, including the financial and other covenants
contained in them; volatility in our stock price; the
characteristics of our servicing portfolio, including prepayment
speeds along with delinquency and advance rates; our ability to
contain and reduce our operating costs, including our ability to
successfully execute on our cost improvement initiative; our
ability to successfully modify delinquent loans, manage
foreclosures and sell foreclosed properties; uncertainty related to
legislation, regulations, regulatory agency actions, government
programs and policies, industry initiatives and evolving best
servicing practices; as well as other risks detailed in Ocwen’s
reports and filings with the Securities and Exchange Commission
(SEC), including its annual report on Form 10-K for the year ended
December 31, 2015. Anyone wishing to understand Ocwen’s business
should review its SEC filings. Ocwen’s forward-looking statements
speak only as of the date they are made and, except for our ongoing
obligations under the U.S. federal securities laws, we undertake no
obligation to update or revise forward-looking statements whether
as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION CONTACT:
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Investors: |
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Media: |
Stephen Swett |
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John Lovallo |
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Dan Rene |
T: (203) 614-0141 |
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T: (917) 612-8419 |
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T: (202) 973 -1325 |
E:
shareholderrelations@ocwen.com |
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E:
jlovallo@levick.com |
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E:
drene@levick.com |
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