S&P assigns B to Freedom Mortgage notes

S&P said it assigned B issue and 3 recovery ratings to Freedom Mortgage Corp.'s planned $600 million of senior unsecured notes due 2028. The 3 recovery rating reflects meaningful recovery (rounded estimate: 60%) in a simulated default.

The agency affirmed Freedom’s B ratings on Aug. 31.

“We expect the transaction to be leverage neutral. The company will use proceeds and cash on hand to fully repay the senior unsecured notes due 2024 and 2025, with any remaining proceeds used to repay outstanding borrowings under the KeyBank line,” S&P said in a press release.

Freedom Mortgage will initially issue the new senior notes, and eventually, Freedom Mortgage Holdings LLC will assume the notes.

The outlook is stable.

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