PHH shareholder Pennant Capital once again seeks support for nominees

By Lisa Kerner

Charlotte, N.C., June 3 - Pennant Capital asked fellow PHH Corp. stockholders to elect Pennant's independent nominees, Allan Loren and Greg Parseghian, to PHH's board on June 10.

Loren is the former chairman of Dun & Bradstreet Corp., and Parseghian is the former chief executive officer of Freddie Mac, according to Pennant.

Pennant made its request in a Tuesday letter to PHH shareholders. It sent a similar letter in May.

Pennant is opposing two of PHH's three nominees, chairman A.B. Krongard and CEO Terence Edwards, both of whom are up for re-election to three-year terms.

PHH, in the latest letter, reiterated its view that in order to position itself for success, PHH must:

• Build a more flexible cost structure;

• Base management incentives on factors that are within management's control;

• Fully evaluate the profitability of each existing and potential client contract, with a view toward profitable growth; and

• Understand and publicly articulate the normalized earnings power of PHH.

Pennant also expressed concern about PHH's ability to refinance its unsecured credit facility that comes due in approximately 18 months.

According to Pennant, there is nearly $1 billion drawn on the facility as of March 31.

PHH is an outsource provider of mortgage and vehicle fleet management services based in Mt. Laurel, N.J.

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