Walter Investment Management Corp. closed the private placement of around $81 million of its Class B secured notes issued last Nov. 22 in a deal called Mid-State Capital Trust 2010-1.
The Class B Notes are backed by U.S. residential mortgage loans, building and installment sales contracts, promissory notes, related mortgages and other security agreements. The notes were rated 'BBB' by Standard & Poor's.
The firm expects to receive net proceeds of roughly $84 million from the sale of the Class B notes, which have an interest rate of 7% per annum and an effective yield of 5.95% and are expected to mature in December 2045.
The sale's proceeds will be used to fund the firm's previously announced acquisition of Green Tree.
Walter Investment also recently proposed the issuance of $500 million first-lien and $265 million second-lien secured term loans associated with the its planned acquisition of Green Tree.
The $500 million first-lien secured term loan received a 'B+' rating from S&P and a 'B1' senior secured rating from Moody's Investors Service. The $265 million second-lien secured term loan received a 'B' rating from S&P and a 'B3' senior secured rating from Moody's.