Walter Investment Management Corp., a real estate investment trust based in Tampa, has closed on the private placement of $81 million of secured notes, the net proceeds of which will be used to fund its acquisition of St. Paul, Minn.-based GTCS Holdings LLC, the parent of Green Tree.
Green Tree, at one time the largest manufactured housing lender in the nation, now is a home loan servicer with a $37 billion portfolio. Its ill-fated acquisition by Conseco was one of the causes of the latter's bankruptcy. Since then, two separate private investment groups have owned the company.
The Class B Secured notes, part of Mid-State Capital Trust 2010-1, are backed by residential mortgage loans, building and installment sales contracts, promissory notes, related mortgages and other security agreements. They mature in December 2045.
The sale should give Walter $84 million of net proceeds.
In related news, Walter received a B1 corporate family rating from Moody's and a B+ long-term counterparty rating from Standard & Poor's.
These ratings were assigned in conjunction with Walter's proposed $500 million first lien and $265 million second lien secured term loans, also a part of the Green Tree deal.
The loan got B+ and B ratings, respectively, from S&P and B1 and B3 senior secured ratings from Moody's.
