WMIH taps four banks for $2.75 billion debt financing commitment

By Sara Rosenberg

New York, Feb. 14 – WMIH Corp. revealed in an 8-K filed with the Securities and Exchange Commission late Tuesday that its $2.75 billion debt financing commitment is from Credit Suisse Securities (USA) LLC, Jefferies LLC, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc.

Proceeds will be used to help fund the acquisition of Nationstar Mortgage Holdings Inc. and refinance around $1.9 billion of Nationstar’s existing senior unsecured notes.

Under the agreement, Nationstar shareholders may elect to receive $18.00 in cash or 12.7793 shares of WMIH common stock for each share of Nationstar common stock they own, subject to an overall proration to ensure that 32% of the total outstanding Nationstar shares are exchanged for the stock consideration. The aggregate consideration payable to Nationstar shareholders will consist of $1.2 billion in cash and WMIH shares currently anticipated to be valued at about $702 million.

Upon completion of the transaction, Nationstar shareholders will own about 36% of the combined company and WMIH shareholders will own around 64%.

Closing is expected in the second half of this year, subject to approval by the shareholders of both companies, regulatory approvals and other customary conditions.

WMIH is a Seattle-based reinsurance business. Nationstar is a Dallas-based non-bank mortgage servicer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.