PHH Corporation (NYSE: PHH) ("PHH" or the "Company") announced today that it has closed its previously announced offering of $350 million in aggregate principal amount of 6.375% Senior Notes due 2021 (the "2021 notes"). The Company is using the net proceeds of the offering of the 2021 notes, together with available cash, to repurchase up to $350 million outstanding aggregate principal amount (the "Maximum Tender Amount") of its 9¼% Senior Notes due 2016 (the "2016 notes").
As part of its previously announced tender offer (the "Tender Offer"), the Company solicited consents from the holders of the 2016 notes (the "Consent Solicitation") for certain proposed amendments (the "Proposed Amendments") to modify the covenants in the indenture governing the 2016 notes (the "Indenture") to conform them with the covenants in the indenture governing the Company's 7.375% Senior Notes due 2019. Adoption of the Proposed Amendments required consents from holders of at least a majority in aggregate principal amount of the outstanding 2016 notes. The Company has received the requisite consents in the Consent Solicitation to execute a supplemental indenture to effect the Proposed Amendments pursuant to its Offer to Purchase and Consent Solicitation Statement, dated August 6, 2013 (as amended from time to time, the "Statement"). As a result of receiving the requisite consents, the Company entered into a supplemental indenture, dated as of August 20, 2013, to the Indenture to effect the Proposed Amendments.
The Company also announced that it is extending the Total Consideration (as defined below) to any holders of the 2016 notes who validly tender their 2016 notes at or prior to 11:59 p.m., New York City time, on September 3, 2013 (the "Offer Expiration Date"), subject to the proration procedures described in the Statement, in order to provide prospective participants in the Tender Offer additional time to consider tendering their 2016 notes and receive such Total Consideration.
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