Nationstar plans to issue over $2 billion in bonds backed by servicer advance fees and deferred servicing receivables from its Nationstar Mortgage Advance Receivables Trust.
The bonds will be issued over several series. Standard & Poor’s has assigned preliminary ratings to the notes.
Credit Suisse, Wells Fargo Securities, and Royal Bank of Scotland are lead managers on the deal.
S&P said in its presale report that noteholders will be paid from the reimbursement of the deferred servicing fees, P&I, escrow, and corporate servicer advances by non-loan-level and loan-level collateral.
Nationstar is one of the biggest non-bank mortgage servicers, having acquired serving rights on a number of portfolios of loans over the past 15 months. It is majority-owned by private equity firm Fortress Investment Group.
In an earnings report released March 8, Nationstar said that it increased its servicing portfolio by 94% in 2012, to $198 billion, through a series of purchases. The company’s portfolio rose to more than $300 billion last month after the completion of part of a deal for $215 billion of contracts from Bank of America.
The servicer has said that regular issuance of term asset-backed securiteis allows it to efficiently finance such acqusitions.