Walter Investment Seeks $1.63 Billion In Loans To Refinance Debt



Walter Investment Management Corp., a mortgage servicer, is seeking $1.63 billion in loans to refinance debt, according to a regulatory filing.

The company is offering a $1.5 billion seven-year, covenant-light loan at 3.75 percentage points more than the London interbank offered rate, according to a person with knowledge of the deal, who asked not to be identified because the terms aren't set. The debt, which is being arranged by Credit Suisse Group AG, will have a 1 percent minimum on the lending benchmark. The company is also seeking a $125 million revolving-credit line.

The Tampa-based company, which has $2 billion of outstanding debt, is paying 4.5 percentage points more than Libor with a 1.25 percent minimum on the benchmark on a $1.7 billion first-lien loan that it obtained last year, according to data compiled by Bloomberg.

In addition to the new credit agreement, the company is also issuing $500 million of notes coming due in 2021, according to the statement. Walter Investment is rated B2 by Moody's Investors Service and a step higher at B+ by Standard & Poor's.

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