PHH tenders, seeks consents for $350 million 9¼% senior notes due 2016

By Susanna Moon

Chicago, Aug. 6 - PHH Corp. said it began a cash tender offer for up to $350 million principal amount of its $450 million 9¼% senior notes due 2016.

The company announced a tender offer for up to $300 million of the notes on Tuesday morning and then upsized the offer later the same day.

The company also is soliciting consents to amend the notes to modify the covenants to conform them with the covenants in the indenture governing the company's 7 3/8% senior notes due 2019, according to the company's press releases.

The total purchase price will be $1,180 for each $1,000 principal amount of notes tendered by 5 p.m. ET on Aug. 19, the consent date.

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

Holders who tender their notes after the consent date will receive $1,150 per $1,000 of notes.

The tender offer will end at 11:59 p.m. ET on Sept. 3.

The company also will pay accrued interest up to but excluding the settlement date, which will be the day after the consent date for early tendered notes and the day after the offer expires for the remaining tenders.

PHH said it expects to accept for purchase 77.78% of the notes tendered by the consent date. The amount was increased from the originally announced 66.67%.

The offer is not conditioned upon any minimum tenders but is conditioned on the completion of a new debt offering with enough proceeds to fund the offer.

Tendered notes may be withdrawn until the consent date.

Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106), Barclays (800 438-3242 or collect 212 528-7581) and BofA Merrill Lynch (888 292-0070 or collect 980 387-3907) are the dealer managers. Global Bondholder Services Corp. (866 794-2200 or banks and brokers 212 430-3774) 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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