PHH sets pricing in tender, solicitation for 7 1/8% notes due 2013

By Jennifer Chiou

New York, Aug. 21 - PHH Corp. announced the pricing terms of its tender offer and consent solicitation for its 7 1/8% notes due 2013.

Holders who tender their notes and deliver their consents to the proposed amendments by the consent deadline at 5 p.m. ET on Aug. 22 will receive the total purchase price of $1,033.55 per $1,000 of notes, which includes a consent premium of $30.00.

Pricing was set at 11 a.m. ET on Aug. 21 using the bid-side yield on the 0.625% Treasury note due Feb. 28, 2013 plus a fixed spread of 50 basis points. The reference yield was 0.178%.

As announced, the company is soliciting consents to amend the notes to eliminate or modify restrictive covenants, and those who tender their notes after the consent deadline will receive only the base payment.

The company also will pay accrued interest to but excluding the applicable settlement date. The early settlement date will be the first business day after the consent date, and the final settlement date will promptly follow the offer expiration.

The tender offer will end at midnight ET on Sept. 6. Tendered notes may be withdrawn by the consent deadline.

Completion of the tender offer, including payment for the tendered notes, is conditioned on completion of a new debt offering with enough proceeds to help fund the offer.

The company previously said that it closed on a $300 million amended and restated revolving credit facility on Aug. 8. It may call for redemption any notes not tendered in the offer.

Bank of America Merrill Lynch at (888 292-0070 or collect 980 387-3907), Barclays (800 438-3242 or collect 212 528-7581) and Citigroup Global Markets Inc. at (800 558-3745 or collect 212 723-6106) are the dealer managers. D.F. King & Co., Inc. (800 290-6426 or banks and brokers 212 269-5550) 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. It launched the offer on Aug. 9.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.