HLSS Floats New Stock Issue for Ocwen Unit Buy
Home Loan Servicing Solutions is servicing its capital base with a new share offering that should total nearly $300 million. The company is floating 13 million shares of its stock in an underwritten public issue at a price of $23 per share. All told, the gross proceeds of the offering should amount to roughly $299 million.
HLSS said it plans to use its share of the proceeds of the issue to purchase the mortgage servicing assets of Ocwen's loan servicing arm, plus expenses related to the transaction.
The joint book-running managers of the issue are Barclays' Capital division, JPMorgan Chase's J.P. Morgan Securities, Bank of America's Merrill Lynch, and the Securities unit of Wells Fargo. The offering is expected to close on June 26.
At the moment, HLSS has nearly 57 million shares outstanding, and its stock trades at $23.01 per share.
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