Freedom Mortgage talks $688.4 million term loan at Libor plus 475 bps

By Sara Rosenberg

New York, March 14 – Freedom Mortgage Corp. launched on Wednesday its $688.4 million senior secured term loan due Feb. 23, 2022 with price talk of Libor plus 475 basis points with a 1% Libor floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 2.5% per annum, the source said.

Barclays and JPMorgan Chase Bank are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on March 21.

Proceeds will be used to reprice an existing term loan down from Libor plus 550 bps with a 1% Libor floor.

With the repricing, the company is asking to remove a corporate debt to tangible equity financial maintenance covenant from its credit agreement, the source added.

The loan will still include a maximum LTV ratio, maintenance of tangible net worth of at least $600 million, and maintenance of a minimum liquidity threshold equal to the greater of $45 million and Ginnie Mae liquidity requirement.

Freedom Mortgage is a Mount Laurel, N.J.-based top tier residential mortgage company engaged in the origination, servicing, selling and securitizing of primarily agency-eligible residential mortgage loans.

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