Nationstar Mortgage LLC and Nationstar Capital Corporation, both indirectly held, wholly owned subsidiaries of Nationstar Mortgage Holdings Inc. (NYSE: NSM) (together, the “Company”), a leading residential mortgage loan servicer, today announced the pricing of $100,000,000 aggregate principal amount of 9.625% Senior Notes due 2019 (the “Additional Notes”). The Additional Notes are a follow-on issue to the Company’s $275,000,000 aggregate principal amount of 9.625% Senior Notes due 2019 issued on April 25, 2012 (the “Existing Notes”) and form a single series of debt securities with the Existing Notes. The Additional Notes will be issued in a private placement at an offering price of 105.500%, have an effective yield of 8.396% and carry a coupon of 9.625% per annum, payable semi-annually in arrears, beginning November 1, 2012. The offering is expected to close on July 24, 2012, subject to customary closing conditions. The Additional Notes will be unsecured and will be guaranteed on a senior basis by certain of the Company’s wholly owned subsidiaries.
The Company will use the net proceeds from this offering for general corporate purposes, which may include future acquisitions and transfers of servicing portfolios, including, but not limited to, the acquisition of certain residential mortgage servicing assets from Residential Capital, LLC, and/or related businesses from third parties, including, but not limited to, from one or more affiliates of the initial purchasers in this offering.
The Additional Notes and related guarantees have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Accordingly, the Additional Notes are being offered and sold only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) and outside the United States to non-U.S. persons in offshore transactions in accordance with Regulation S under the Securities Act. Therefore, the Additional Notes will be subject to restrictions on transferability and resale, and may not be transferred or resold absent an effective registration statement or an applicable exemption from such registration requirements of the Securities Act.