Nationstar Prices $400 Million of Debt

Nationstar Mortgage Holdings Inc., Lewisville, Texas, has priced $400 million of debt at an interest rate of 6.5%. The senior notes are due in 2021 with interest paid semi-annually beginning July 1. They are being sold in a private placement.

The proceeds will be used for, among other things, the purchase of a mortgage servicing rights portfolio from Bank of America. They can also be used to help pay for other potential servicing portfolio purchases.

Nationstar closed on the $97 billion B of A portfolio on Feb. 4, and after the market closed on that day it priced this offering. On Jan. 28, it priced $300 million in asset-backed term notes, “the first-ever agency servicer advance securitization,” it said.

The offering is expected to close on Feb. 7. The notes are unsecured and will be guaranteed on a senior basis by Nationstar.