Mortgage servicer Ocwen Financial is seeking a $575 million term loan B to finance its acquisition of Litton from Goldman Sachs.
Lead bank Barclays Capital has yet to establish price talk.
Standard & Poor's has assigned a 'B' rating to the loan.
Last month Ocwen agreed to pay $263.7 million for Litton. Ocwen will use the remainder of the proceeds from the term loan to lower advance rates on an associated servicer advance facility, according to a presale report issued by S&P.
“We believe that Ocwen's recent servicing-portfolio acquisitions have demonstrated the company's ability to grow its business despite its lack of an origination platform and an industry-wide slowdown in subprime mortgage originations," credit analyst Kevin Cole said in the report. “We also expect Ocwen's profitability profile and servicing franchise value to improve once the company integrates these assets into its low-cost servicing platform.”
As of March 31, Ocwen and Litton were servicing roughly $70.5 billion and $41.2 billion, respectively, in unpaid principal balance of primarily subprime residential mortgage loans.