A company that acquired mortgage-servicing rights on more than $70 billion in loans from Walter Investment Management Corp. is planning a public offering to help fund the transaction.
New Residential Investment Corp. announced that it was acquiring MSRs on $35 billion in conventional residential loans from Tampa, Florida-based Walter Investment.
In addition, New York-based New Residential agreed to
acquire assets from Walter that include MSRs on another $37 billion in mortgages. The combined purchase price is $514 million.
A news release Thursday indicated that New Residential
has priced a public offering for 20 million of shares of its common stock, which trades on the NYSE under the symbol NRZ.
The gross proceeds from the transaction are expected to be $284 million.
New Residential intends to close on the offering on Aug 16.
Net proceeds will be used to fund a portion of the acquisition of MSRs on $33 billion of the conventional loans and $35 billion of
the second deal.
“In the event that all or any portion of the Walter transactions are not completed, the company intends to use the net proceeds from this offering for general corporate purposes, including, but not limited to, making additional investments,” the statement said.
Underwriters for the offering include Citigroup Inc., Barclays, J.P. Morgan and UBS Investment Bank.