Ocwen Repurchases $72.3M in Stock from WL Ross
Ocwen Financial (OCN) has repurchased approximately $72.3 million in stock from WL Ross & Co., a private-equity firm in New York.
Ocwen, an Atlanta-based mortgage servicing company, said Monday that 62,000 outstanding shares of its Series A preferred stock were converted into common stock, repurchased and then immediately canceled.
"It is an effective way for us to reduce the number of shares outstanding without materially reducing our stockholders equity," Bill Erbey, Ocwen's executive chairman, said in a press release.
The deal is one of a series of planned transactions between Ocwen and WL Ross. Ocwen redeemed $159 million of preferred shares from the PE firm in September and at the time amended its bank credit facility to allow it to repurchase more. Ocwen issued preferred stock to WL Ross as part of its purchase of Homeward Residential Holdings in 2012.
Wilber Ross, founder of the PE firm that bears his name, said in the release that the latest sale "does not reflect a change in our enthusiasm for Ocwen and its management."
Ross will remain on the Ocwen Board.