Nationstar estimates that this transaction will be accretive with incremental AEBITDA per share of $2.20 - $2.55 and EPS of $0.70 - $0.80 in 2013, and AEBITDA per share of $4.65 - $5.40 and EPS of $2.30 - $2.70 in 2014. Including the portfolio acquisitions, Nationstar anticipates total company AEBITDA per share of $9.50 - $11.05 and total company EPS of $3.70 - $4.35 in 2013, and AEBITDA per share of $12.30 - $14.30 and EPS of $5.60 - $6.50 in 2014.
“The 2013 estimates reflect the year-one platform ramp associated with this large acquisition as we board and integrate the servicing portfolios. The 2014 estimates reflect the significant economies of scale and fully ramped earnings power of the company,” said Nationstar CFO David Hisey. “We are excited about Nationstar’s future as one of the largest real estate services providers in the U.S. and remain focused on generating multiple revenue streams throughout the customer lifecycle.”
Nationstar will fund approximately $680 million of the MSR purchase price with the proceeds of a co-investment by Newcastle Investment Corp. (“Newcastle”) and Fortress-managed funds, similar in structure to previous transactions. Nationstar will fund its $665 million portion of the MSR acquisition price with investable cash.
Conference Call Webcast and Investor PresentationChief Executive Officer, Jay Bray, and Chief Financial Officer, David Hisey, will host a conference call for investors and analysts to discuss the Bank of America servicing portfolio acquisition and other general business matters at 10:00 a.m. (ET) on Monday, January 7, 2013. To listen to the event live, or in an archive which will be available for 14 days, visit Nationstar's website at http://investors.nationstarholdings.com. The conference call will also be accessible by dialing 866-770-7125, or 617-213-8066 internationally. Please use the participant passcode 65713014 to access the live conference call. An investor presentation will also be available at http://investors.nationstarholdings.com. A replay of the conference call will be available for approximately two weeks by dialing 888-286-8010, or 617-801-6888 internationally, using the participant passcode 97014200. About Nationstar Mortgage Holdings Inc. Based in Lewisville, Texas, as of September 30, 2012, Nationstar serviced over one million residential mortgages with a servicing portfolio totaling $198 billion in unpaid principal balance. In addition, Nationstar operates an integrated loan origination business, enabling Nationstar to mitigate servicing portfolio run-off and improve credit performance for loan investors. Nationstar currently employs over 4,100 people.