Walter Investment raises term loan size to $700 million, flexes lower

By Sara Rosenberg

New York, Nov. 13 - Walter Investment Management Corp. increased its first-lien term loan to $700 million from $600 million and lowered pricing to Libor plus 450 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

The term loan still has a 1.25% Libor floor, an original issue discount of 99, 101 repricing protection for one year and amortization of 5% per annum.

In addition, the company upsized its revolver to $125 million from $100 million, the source said.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding Inc. are the lead banks on the now $825 million five-year senior secured credit facility (B1/B+), up from $700 million.

Covenants include maximum leverage and interest coverage ratios.

Proceeds will be used to repay all borrowings under an existing first-lien term loan that was sized at about $444 million at June 30, and for working capital and general corporate purposes.

Commitments were due at 5 p.m. ET on Tuesday, the source added.

Walter Investment is a Tampa, Fla.-based asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets.

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