Ocwen Financial Announces Closing of $400 Million Offering of PHH Mortgage Corporation Senior Secured Notes Due 2026

Enhances Capital Structure and Increases Financial Flexibility to Support Continued Growth and Investment in the Company

WEST PALM BEACH, Fla., March 04, 2021 (GLOBE NEWSWIRE) -- Ocwen Financial Corporation (NYSE: OCN) (“Ocwen” or the “Company”), a leading non-bank mortgage servicer and originator, today announced that its subsidiary PHH Mortgage Corporation (“PMC”) has closed its previously announced offering of $400 million aggregate principal amount of 7.875% Senior Secured Notes due 2026 (the “PMC Notes”). The PMC Notes are guaranteed on a senior secured basis by the Company and PHH Corporation ("PHH"), the parent company of PMC and subsidiary of the Company.

The Company also announced the completion of its previously announced private placement of $199.5 million aggregate principal amount of Ocwen senior secured second lien notes (the “Second Lien Notes”) to funds managed by Oaktree Capital Management, L.P.

Glen A. Messina, President and CEO of Ocwen, said, “We continue to make significant progress in enhancing our capital structure through the successful completion of these transactions. Refinancing our existing corporate debt while improving our overall maturity profile will enable greater financial flexibility to invest in continued growth in our originations and servicing businesses. The strong level of investor interest, particularly from new investors, in our debt issuance is a testament to the successful transformation of our business, which is driving improved profitability, record originations volume and a cost-competitive platform that is well positioned for future growth and profitability.”

The net proceeds from the PMC Notes will be used, together with the net proceeds from the Second Lien Notes, to repay in full $498 million of indebtedness, including PMC’s Senior Secured Term Loan, all of PHH’s outstanding 6.375% senior unsecured notes due 2021 and PMC’s 8.375% senior secured second lien notes due 2022. The remaining proceeds are expected to be used for general corporate purposes, including to accelerate growth of Ocwen’s origination and servicing business.

The PMC Notes and the Second Lien Notes are not registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The PMC Notes were sold only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A of the Securities Act and to non-U.S. persons outside of the United States in compliance with Regulation S of the Securities Act.