Nationstar Comes to Market Again—With $100 Million in Senior Notes

Nationstar Mortgage LLC, which is considered a leading bidder for Residential Capital Corp., priced yet another offering of senior notes this week—this one for $100 million.

The notes, due in 2020, are priced to yield 7.875%.

Last week the publicly traded firm priced $300 million in notes, targeting the instruments to what it calls “qualified institutional buyers” in the U.S. and overseas.

Investment banking sources tracking the ResCap auction believe Nationstar is amassing a war chest to give itself an advantage in the bidding. ResCap’s value lies in in its $365 billion servicing portfolio.

Interestingly, in a recent SEC filing, Nationstar included extensive financial disclosures about ResCap, even though it does not yet own the company and may not prevail as the winning bidder.