The Firm represented Walter Investment Management Corp. (NYSE MKT: WAC) (the “Company”) in connection with concurrent registered offerings of 6,900,000 shares of common stock and $290.0 million aggregate principal amount of 4.50% Convertible Senior Subordinated Notes due 2019 (in each case, including the underwriters’ full exercise of their over-allotment options).
The Company intends to use approximately $95 million of the net proceeds from the common stock offering to partially fund its acquisition of the outstanding capital stock of Reverse Mortgage Solutions, Inc. The Company intends to use the remaining net proceeds to enhance its liquidity in anticipation of potential growth opportunities, including acquisitions, and for working capital and general corporate purposes. The Company intends to use the net proceeds from the Convertible Senior Subordinated Notes offering, together with cash on hand, to repay amounts outstanding under the Company’s second lien senior secured term loan and to pay certain fees, expenses and premiums in connection therewith.
Walter Investment Management Corp. is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets. Based in Tampa, Florida, the Company services a diverse loan portfolio.
The Simpson Thacher team included Risë Norman, Roxane Reardon, Frank Kwok, Sunny Cheong, Tony Rim, Mark Chorazak and Jonathan Stradling (Capital Markets), David Eisenberg, James Cross, Christian Fischer and John Freese (Credit), Marcy Geller and Adam Wells (Tax), Adeeb Fadil (Environmental), David Rubinsky and Douglas Tang (Executive Compensation and Employee Benefits), Jodie Sopher Pimentel (Intellectual Property) and Peter Gordon, Michael Holick and Chelsea Freeman (M&A).