New Residential Investment Corp. (NYSE:NRZ; “New Residential” or the
“Company”) today announced that it has repaid $2.5 billion of term notes
issued by the HLSS Servicer Advance Receivables Trust (“HSART”).
The $2.5 billion HSART term notes became immediately due and payable as
a result of, and solely as a result of, the master servicer rating
downgrade of Ocwen Loan Servicing, LLC (“Ocwen”), announced by Standard
& Poor’s Rating Services on September 29, 2015.
New Residential had previously secured approximately $4 billion of
surplus servicer advance financing commitments from its lenders. The
excess financing capacity was used to repay the $2.5 billion HSART term
notes at par.
“From the early stages of planning for the HLSS acquisition, we were
thoughtful in managing our liquidity and were diligent in securing
surplus financing commitments to ensure a seamless paydown of the $2.5
billion term notes in the event of an Ocwen servicer rating downgrade,”
comments Michael Nierenberg, Chief Executive Officer of New Residential.
“Under our surplus funding commitments, we are able to increase our
advance rates and free up approximately $200 million of additional
liquidity for near-term deployment. Furthermore, we look forward to
continuing to work closely with Ocwen as one of our primary servicing
partners.”
ABOUT NEW RESIDENTIAL
New Residential focuses on opportunistically investing in, and
actively managing, investments related to residential real estate. The
Company primarily targets investments in mortgage servicing related
assets and other related opportunistic investments. New Residential is
organized and conducts its operations to qualify as a real estate
investment trust (“REIT”) for federal income tax purposes. The Company
is managed by an affiliate of Fortress Investment Group LLC (NYSE:FIG),
a global investment management firm.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, such as statements regarding the ability
to increase the Company’s advance rates and the ability to free up
approximately $200 million of additional liquidity for near-term
deployment. These statements are based on management's current
expectations and beliefs and are subject to a number of trends and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements, many of which are
beyond the Company’s control. The Company can give no assurance that its
expectations will be attained. Accordingly, you should not place undue
reliance on any forward-looking statements contained in this press
release. For a discussion of some of the risks and important factors
that could affect such forward-looking statements, see the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” incorporated by reference
in the Company’s Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q, which are available on the Company’s website (www.newresi.com).
In addition, new risks and uncertainties emerge from time to time, and
it is not possible for the Company to predict or assess the impact of
every factor that may cause its actual results to differ from those
contained in any forward-looking statements. Such forward-looking
statements speak only as of the date of this press release. The Company
expressly disclaims any obligation to release publicly any updates or
revisions to any forward-looking statements contained herein to reflect
any change in the Company's expectations with regard thereto or change
in events, conditions or circumstances on which any statement is based.
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