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New Residential Investment to buy HLSS for $1.3 billion

Staff writer ▼ | February 24, 2015
New Residential Investment Corp. and Home Loan Servicing Solutions, Ltd. announced a definitive agreement under which New Residential will acquire all of the outstanding shares of HLSS for $18.25 per share in cash, totaling approximately $1.3 billion.
New Residential Investment
Acquisition   $18.25 per share in cash for HLSS
The purchase price represents a 9% premium to HLSS’ closing price of $16.76 on February 20, 2015.

“We are pleased to announce this landmark transaction with HLSS,” said Michael Nierenberg, chief executive officer of New Residential.

“The acquisition will significantly add to the value of our book of mortgage servicing assets and expand our relationships with mortgage servicers to include both Nationstar Mortgage and Ocwen Financial Corp., which are the two largest non-bank servicers in the United States. We are confident that this transaction will enhance our earnings growth potential and our ability to generate strong returns for our shareholders.”

John Van Vlack, chief executive officer of HLSS commented, “I am pleased that this transaction offers our investors cash equivalent to the book value of their shares and addresses the uncertainty associated with our future financing obligations.

"Of the strategic proposals received, New Residential’s was the most attractive for a variety of reasons including valuation and certainty of execution. We believe that New Residential is well positioned to provide support and act as a strategic financing party to Ocwen over the long-term."

The acquisition has been approved by the Board of Directors of each company and is expected to close in the second quarter of 2015, subject to HLSS shareholder approval and other customary closing conditions.


 

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