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Walter Investment Management Corp. Announces Public Offerings Of Common Stock And Convertible Senior Subordinated Notes Due 2019

Stocks in this article: WAC

TAMPA, Fla., Oct. 15, 2012 /PRNewswire/ -- Walter Investment Management Corp. (NYSE MKT: WAC) (the "Company") announced today the commencement of a registered underwritten public offering of 4,500,000 shares of its common stock.  In addition, the Company intends to grant the underwriters of the common stock offering a 30-day option to purchase up to an additional 675,000 shares of common stock.

The Company today also announced the commencement of a registered underwritten public offering of $265.0 million aggregate principal amount of its convertible senior subordinated notes due 2019. The Company intends to grant the underwriters of the notes offering a 30-day option to purchase up to an additional $25.0 million aggregate principal amount of the convertible senior subordinated notes. Prior to May 1, 2019, the convertible senior subordinated notes will be convertible only upon specified events and during specified periods, and, on and after May 1, 2019, at any time. Upon conversion, the Company may deliver or pay, at its option, cash, shares of common stock, or a combination of cash and shares of common stock. The interest rate, conversion rate and certain other terms of the convertible senior subordinated notes are to be determined at the time of pricing of the convertible senior subordinated notes.

Neither offering is contingent upon completion of the other offering and each offering is being conducted as a separate public offering.

The Company intends to use approximately $95 million of the net proceeds from the common stock offering to partially fund its acquisition of the outstanding capital stock of Reverse Mortgage Solutions, Inc. (the "Acquisition").  The Company intends to use the remaining net proceeds to enhance its liquidity in anticipation of potential growth opportunities, including acquisitions, and for working capital and general corporate purposes. The Company intends to use the net proceeds from the convertible senior subordinated notes offering to repay the amounts outstanding under the Company's second lien senior secured term loan and, if the underwriters in the convertible senior subordinated notes offering exercise their option to purchase additional convertible senior subordinated notes, certain fees, expenses and premiums in connection therewith.

Shortly after the closing of the common stock offering and the convertible senior subordinated notes offering, the Company intends to refinance its first lien senior secured credit facility through new debt financing. There can be no assurance that such refinancing will occur at all or will occur on terms favorable to the Company.

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