Na­tion­star de­clares pric­ing of $200 mil­lion Notes

The Pak Banker - - COMPANIES/BOSS -

Na­tion­star Mort­gage Hold­ings, a lead­ing res­i­den­tial mort­gage ser­vices com­pany, to­day an­nounced the pric­ing of $200 mil­lion ag­gre­gate prin­ci­pal amount of 6.500% Se­nior Notes due 2021 (the "Ad­di­tional Notes") of­fered by its wholly-owned sub­sidiaries Na­tion­star Mort­gage LLC (the "Com­pany") and Na­tion­star Cap­i­tal Cor­po­ra­tion (to­gether with the Com­pany, the "Is­suers"), which was up­sized due to sig­nif­i­cant de­mand from its orig­i­nal $150 mil­lion launch. The Ad­di­tional Notes are a fol­low-on is­sue to the Is­suers' $400 mil­lion ag­gre­gate prin­ci­pal amount of 6.500% Se­nior Notes due 2021 is­sued on Fe­bru­ary 7, 2013 (the "Ex­ist­ing Notes") and form a sin­gle se­ries of debt se­cu­ri­ties with the Ex­ist­ing Notes.

The Ad­di­tional Notes will be is­sued in a pri­vate place­ment at an of­fer­ing price of 103.250%, have an ef­fec­tive yield of 5.828% and carry a coupon of 6.500% per an­num, payable semi-an­nu­ally in ar­rears, be­gin­ning July 1, 2013. The of­fer­ing is ex­pected to close on March 26, 2013, sub­ject to cus­tom­ary clos­ing con­di­tions. The Ad­di­tional Notes will be un­se­cured and will be guar­an­teed on a se­nior ba­sis by Na­tion­star, Na­tion­star Sub1 LLC, Na­tion­star Sub2 LLC and cer­tain of the Com­pany's wholly-owned sub­sidiaries.

The Is­suers will use the net pro­ceeds from this of­fer­ing for gen­eral cor­po­rate pur­poses, which may in­clude fu­ture ac­qui­si­tions and trans­fers of ser­vic­ing port­fo­lios, in­clud­ing, but not lim­ited to, the ac­qui­si­tion of cer­tain res­i­den­tial mort­gage ser­vic­ing as­sets from Bank of Amer­ica, Na­tional As­so­ci­a­tion, and/or re­lated busi­nesses from third par­ties, in­clud­ing, but not lim­ited to, from one or more af­fil­i­ates of the ini­tial pur­chasers in this of­fer­ing. The Ad­di­tional Notes and re­lated guar­an­tees have not been reg­is­tered un­der the Se­cu­ri­ties Act of 1933, as amended (the "Se­cu­ri­ties Act"), or any state se­cu­ri­ties laws. Ac­cord­ingly, the Ad­di­tional 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 Ad­di­tional 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 Se­cu­ri­ties Act.

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