PHH gets tenders for $25,000 more 7 3/8% notes, $50,000 6 3/8% notes

By Susanna Moon

Chicago, July 18 – PHH Corp. said investors had tendered $177,479,000, or 64.54%, of its $275 million 7 3/8% senior notes due 2019 and $318,457,000, or 93.66%, of its $340 million 6 3/8% senior notes due 2021.

The final tender count includes another $25,000 of 2019 notes and $50,000 of 2021 notes tendered since 5 p.m. ET on June 30, the early tender date, according to a company update on Tuesday.

After the offers, there is left outstanding $97,521,000 principal amount of the 2019 notes and $21,543,000 principal amount of the 2021 notes.

The tender offer ended at 11:59 p.m. ET on July 17.

Investors had tendered $177,454,000, or 64.53%, of the 7 3/8% notes due 2019 and $318,407,000, or 93.65%, of the 6 3/8% notes as of the early deadline, which was enough to amend the notes.

After securing the needed majority of consents, PHH executed supplemental indentures to each series of notes.

The company said on June 19 that it is tendering for the notes and soliciting consents to amend the notes to eliminate or modify substantially all of the restrictive covenants as well as some events of default and other provisions contained in each of the indentures, to consent to the sales of the company’s mortgage servicing rights and to waive any potential default that may occur resulting from the sales, including if the sales constitute all or substantially all of the company’s assets.

The total purchase prices will be $1,100 for each $1,000 principal amount of 7 3/8% notes and $1,031.88 per $1,000 principal amount of 6 3/8% notes tendered by the early tender deadline.

Each total payment includes an early tender premium of $30 per $1,000 principal amount of notes.

Holders who tendered their notes after the early deadline will receive the total purchase price less the early premium.

The company also will pay accrued interest up to but excluding the settlement date.

Holders who tender their notes will be deemed to have given their consents, and holders may not deliver their consents without tendering their notes.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-2476) are the dealer managers. Global Bondholder Services Corp. (866 470-4200) is the tender agent and information agent.

PHH is a Mt. Laurel, N.J.-based business process management services company for the mortgage and fleet management industries.

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