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Walter Seeking Debt to Buy B of A MSRs

JAN 15, 2013 4:20pm ET
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Walter Investment Management Corp. is looking for a $475 million incremental financing facility to pay the initial installments on the $93 billion Fannie Mae mortgage servicing rights portfolio it is buying from Bank of America.

It has hired Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc. to help arrange the credit, which would supplement an existing $700 million senior secured first lien term loan facility maturing on Nov. 28, 2017.

The incremental borrowings under the facility being sought are likely to be secured by liens on substantially all of Walter's assets.

Mark J. O'Brien, Walter’s chairman and chief executive, said, "We are confident in our ability to access the debt markets to obtain the necessary funding for the acquisition of the Bank of America MSRs, which enhances our ability to drive shareholder value at attractive terms.

“This is in line with our expectations for the term loan facilities when they were refinanced last fall. We believe we remain well positioned to capitalize on the continued secular shifts occurring in the mortgage sector."

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