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Ocwen set to go on offense after refinancing debt; tops $5 per share

Published 11/17/2016, 01:16 PM
Ocwen set to go on offense after refinancing debt; tops $5 per share
ONIT
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ASPS
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  • The refinance of the company's bank loan out of the way, Ocwen (OCN +2%) moves to refinance its Senior Secured Term Loan, with Bloomberg reporting pricing on the $335M deal in the area of Libor +575 basis points and (like the bank loan) a 2022 maturity.
  • It wasn't long ago that the SSTL had a balance well north of $1B, and Ocwen faced a major penalty if it didn't refinance by next June.
  • The debt extensions out of the way, Ocwen is presumably in position to go on offense, i.e. start buying MSRs again. The regulators, of course, will have to sign off first, but that's looking more hopeful now than it would have a few months back.
  • The news is also of interest to Altisource Portfolio Solutions (ASPS), which counts Ocwen as its largest client.


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