Nationstar Mortgage Holdings Inc. (NSM)

[Enterprising Investor]

Nationstar Mortgage Announces Pricing of $2.0 Billion Servicing Advance Securitization and Other Facilities (6/06/13)

LEWISVILLE, Texas--(BUSINESS WIRE)-- Nationstar Mortgage Holdings Inc. (NYSE: NSM)-

Reduces interest rate by more than 1.75%

Increases advance rate to 93%

Efficient funding vehicle for advances; future issuances planned
Nationstar Mortgage Holdings Inc. (NYSE: NSM)(the “Company”), a leading residential mortgage services company, announced today the pricing of $1.0 billion in fixed rate asset-backed term notes (the “Term Notes”) to be issued by Nationstar Mortgage Advance Receivables Trust (the “Issuer”). Also in connection with the offering, Nationstar will issue approximately $1.0 billion of variable funding notes (“VFNs”, and together with the Term Notes, the “Notes”). The issuance and sale of the Notes is subject to customary closing conditions and is expected to close on June 7, 2013.

The Term Notes carry a weighted average fixed interest rate of 2.10% and a weighted average term of 3.0 years. The Notes will replace $1.9 billion in existing non-Agency servicing advance facilities and are expected to result in a reduction in rate of over 1.75%. Additionally, the effective advance rate of the Notes will be approximately 93%, an increase over the effective advance rate on the facilities being replaced. This securitization, in addition to the Agency securitization in January 2013, is part of Nationstar’s programmatic Term Asset-Backed Security (“ABS”) issuance program which will allow it to efficiently finance current and future acquisitions of Agency and non-Agency servicing advance assets.
“I am pleased to announce the execution of our recent non-Agency servicer advance securitization,” said Jay Bray, Nationstar’s CEO. “This securitization is yet another example of Nationstar executing on our stated goals of lowering advance funding costs and increasing the profitability of our servicing segment. This execution also diversifies our funding sources and exchanges floating-rate debt with fixed-rate term debt locked in at extremely favorable rates. We intend to access the ABS markets several times in the upcoming quarters as we board acquired portfolios.”

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Accordingly, the Notes are being offered and sold only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) and outside the United States to non-U.S. persons in offshore transactions in accordance with Regulation S under the Securities Act. Therefore, the Notes will be subject to restrictions on transferability and resale, and may not be transferred or resold absent an effective registration statement or an applicable exemption from such registration requirements of the Securities Act.
This press release does not constitute an offer to sell or solicitation of an offer to purchase with respect to the Notes or other securities, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or purchase would be unlawful prior to the registration or qualification under the securities laws of