SPS Renews Credit Lines
Select Portfolio Servicing, formerly Fairbanks Capital, said it has successfully renewed and expanded its major credit facilities that provide financing for the company's business.
J.P. Morgan Chase led a $250 million syndicated facility that finances servicing advances, mortgage servicing rights and working capital. The syndicate included all of Select Portfolio Servicing's existing lenders and one new one. The size of the credit line was increased from $150 million to $250 million, and the term was extended to 24 months, the company said.
Credit Suisse First Boston also extended a $200 million credit facility that finances servicing advances and the purchase of mortgage servicing rights, with an increased term of 18 months. RBS Greenwich Capital executed a $120 million structured financing for the Conti servicing advances with a term of 12 months. SPS acquired servicing rights from the former Conti Financial several years ago.
"We are pleased to have renewed our credit facilities, and appreciate the support of our existing and new lenders," said Matt Hollingsworth, CEO of SPS, in a company news release. "These credit facilities solidify the company's financial position, and allow us to pursue our business plan of acquiring new servicing rights and growing the portfolio."
Select Portfolio Servicing is a nonprime residential mortgage servicer headquartered in Salt Lake City. It also has facilities in Jacksonville, Fla. The company services approximately 350,000 loans.
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