PHH Corp., Mt. Laurel, N.J., is now looking to sell $150 million in debt to help pay off $250 million of debt that matures in April.
Originally the company was looking to sell $250 million in debt back in December, but cancelled that offering.
A corporate spokeswoman said no one from the company was available to answer questions about this offering.
The cancelled $250 million debt offering was replaced by a $100 million upsizing of an April 2010 debt sale. ASR sister publication National Mortgage News previously reported that sources state some executives at PHH believe the company didn't need the extra $150 million.
As a result of the cancellation Standard & Poor's cut its long-term rating on the company to "BB-" with the belief that PHH could not pay an additional $423 million in debt due in March 2013 from free corporate cash flows.
Last week, company president Jerome Selitto resigned as president and CEO and was replaced by chief operating officer Glen Messina. There was also speculation that the company could sell some of its mortgage servicing rights.
The $150 million convertible senior notes would be due in 2017. As with the cancelled offering, the proceeds from this sale, along with those from the add-on offering and cash on hand to pay off the 4% Convertible Senior Notes due April 15. PHH added that until those notes are paid off it might use the money to originate mortgage loans.
The prospectus for the deal gives preliminary fourth quarter and full year origination volume numbers for PHH. It did $15.6 billion for the fourth quarter, down 15% from the prior year. Full year volume of $52 billion was up 6% over 2010. The third party origination channel did $5.4 billion, down 24% in the fourth quarter versus the same period one year prior.
