FORT WASHINGTON, Pa.,
Aug. 1, 2017 /PRNewswire/
-- Walter Investment Management Corp. (the "Company") (NYSE:
WAC.BC) today announced that it had entered into a Restructuring
Support Agreement (the "RSA") with its senior lenders holding, as
of July 31, 2017, more than 50% of
the loans and/or commitments outstanding (the "Consenting Term
Lenders") under the Company's Amended and Restated Credit
Agreement, dated as of December 19,
2013 (the "Credit Agreement").
As set forth in the RSA, the parties to the RSA have agreed to
the principal terms of a proposed financial restructuring of the
Company, which will include an extension of the Credit Agreement's
maturity until June 2022. Also on
July 31, 2017, the Consenting Term
Lenders entered into a waiver pursuant to which they waived certain
events of default under the Credit Agreement, including those
arising as a result of the Company's previously announced
restatement of certain of its financial statements due to an error
in the Company's calculation of the valuation allowance on its
deferred tax asset balances (the "Restatement"), and an amendment
to the Credit Agreement to make certain changes to the mandatory
prepayment provisions and negative covenants thereof and certain
technical changes.
In addition, more than 50% of the holders of the Company's
7.875% senior notes due 2021 (the "Senior Notes") issued pursuant
to the Senior Notes Indenture (the "Senior Notes Indenture"), dated
December 17, 2013, although not party
to the RSA, have also agreed to waive any event of default existing
under the Senior Notes Indenture as a result of the Restatement. As
contemplated by the RSA, the Company intends to use good faith
efforts to negotiate over the next 30 days a restructuring support
agreement with holders of a sufficient holding of the Senior
Notes.
Anthony Renzi, Walter's President
and Chief Executive Officer, commented, "After careful
consideration, we have taken a significant step to improve Walter's
financial position."
"The actions we have taken, combined with the support of our
existing lenders, should help us strengthen our balance sheet and
position Walter for a sustainable future."
A summary of the material terms and conditions of each of the
RSA, the waiver and amendment to the Credit Agreement as well as a
copy of each such agreement will be included in a Current Report on
Form 8-K being filed with the Securities and Exchange Commission
today.
Advisors
Weil, Gotshal & Manges LLP is acting as legal counsel,
Houlihan Lokey is acting as
investment banking debt restructuring advisor and
Alvarez & Marsal North
America, LLC is acting as financial advisor to the Company
in connection with the restructuring.
About Walter Investment Management Corp.
Walter Investment Management Corp. is an independent servicer
and originator of mortgage loans and servicer of reverse mortgage
loans. Based in Fort Washington,
Pennsylvania, the Company has approximately 4,500 employees
and services a diverse loan portfolio. For more information about
Walter Investment Management Corp., please visit the Company's
website at www.walterinvestment.com. The information on the
Company's website is not a part of this release.
Cautionary Statements Regarding Forward-Looking
Information
Certain statements in this press release constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements that are
not historical fact are forward-looking statements. Certain of
these forward-looking statements can be identified by the use of
words such as "believes," "anticipates," "expects," "intends,"
"plans," "projects," "estimates," "assumes," "may," "should,"
"could, " "shall," "will," "seeks," "targets," "future," or other
similar expressions. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors, and
our actual results, performance or achievements could differ
materially from future results, performance or achievements
expressed in these forward-looking statements. Such statements
include, but are not limited to, statements relating to the
potential transactions contemplated by the restructuring support
agreement, descriptions of management's strategy, plans, objectives
or intentions and descriptions of assumptions underlying any of the
above matters and other statements that are not historical
fact.
Forward-looking statements are subject to significant known and
unknown risks, uncertainties, challenges and other important
factors, and the Company's actual results, performance or
achievements could differ materially from future results,
performance or achievements expressed in these forward-looking
statements. These forward-looking statements are based on the
Company's current beliefs, intentions and expectations and are not
guarantees or indicative of future performance, nor should any
conclusions be drawn or assumptions be made as to any potential
outcome of any proposed transactions the Company considers. Risks
and uncertainties relating to the proposed financial restructuring
include: the ability of the Company to comply with the terms of the
RSA, including completing various stages of the restructuring
within the dates specified by the RSA; the ability of the Company
to obtain requisite support of the restructuring from various
stakeholders; and the effects of disruption from the proposed
restructuring making it more difficult to maintain business,
financing and operational relationships. Important assumptions and
other important factors that could cause actual results to differ
materially from those forward-looking statements include, but are
not limited to, those factors, risks and uncertainties described in
more detail under the heading "Risk Factors" and elsewhere in the
Company's annual and quarterly reports, including amendments
thereto, and other filings with the Securities and Exchange
Commission.
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SOURCE Walter Investment Management Corp.