PHH enters $300 million restated revolver priced at Libor plus 375 bps

By Marisa Wong

Madison, Wis., June 3 - PHH Corp. amended and restated its credit agreement dated Aug. 2, 2012 for a $300 million revolving credit facility due Aug. 2, 2015, according to an 8-K filing with the Securities and Exchange Commission.

Up to $35 million of borrowing capacity under the revolver is available for the issuance of letters of credit.

Pricing is based on the company's senior non-credit enhanced unsecured long-term debt ratings. The applicable spread for Libor loans ranges from 350 basis points to 400 bps, and the facility fee ranges from 40 bps to 60 bps.

As of the amendment date, interest was equal to Libor plus 375 bps, there was no utilization fee, and the facility fee was 50 bps.

The credit agreement contains restrictive covenants as well as financial covenants. The company is required to maintain (i) on the last day of each fiscal quarter, consolidated net worth of $1 billion; (ii) at all times, a ratio of debt to tangible net worth no greater than 5.75 to 1; (iii) committed third-party mortgage warehouse capacity of at least $1 billion at all times; (iv) committed third-party fleet financing capacity of at least $750 million and (v) a ratio of borrowing base to unsecured debt of at least 1.2 to 1.0.

PHH entered into the amended and restated credit agreement on Friday.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Manufacturers and Traders Trust Co., RBS Securities Inc. and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners. Bank of America, NA, Citibank, NA, Manufacturers and Traders Trust Co., Royal Bank of Scotland plc and Wells Fargo Bank, NA are the syndication agents. Barclays Bank plc is the documentation agent. JPMorgan Chase Bank, NA is the administrative 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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