PHH commences tender offer to purchase up to USD 266m of its common stock.
BANKING AND CREDIT NEWS-August 14, 2017-PHH commences tender offer to purchase up to USD 266m of its common stock
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PHH Corporation (NYSE: PHH) has announced the commencement of a modified "Dutch auction" self-tender offer to purchase shares of its common stock for an aggregate amount of up to USD 266 million in cash, the company said.
Pursuant to the tender offer, company stockholders may tender all or a portion of their shares of common stock (i) at a price per share specified by the tendering stockholder (in increments of USD 0.05) of not greater than USD 14.25 per share nor less than USD 13.45 per share ("Auction Tenders"), or (ii) without specifying a purchase price, in which case their shares will be purchased by the company at the purchase price determined in tender offer ("Purchase Price Tenders"), in each case less applicable withholding taxes and without interest. The NYSE closing price of PHH's common stock on August 10, 2017 was USD 13.95 per share.
The tender offer will expire on September 8, 2017 at 11:59 p.m., New York City time, unless the tender offer is extended or withdrawn by the company. When the tender offer expires, the company will determine a single purchase price, which will not be greater than USD 14.25 per share nor less than USD 13.45 per share, that the company will pay for shares, taking into account the number of shares tendered pursuant to Auction Tenders and Purchase Price Tenders and the prices specified by stockholders tendering shares pursuant to Auction Tenders, and that will enable the company to purchase the maximum number of shares properly tendered having an aggregate purchase price not exceeding USD 266 million. The company also reserves the right to purchase up to an additional 2% of its outstanding shares, thereby increasing the aggregate purchase price, pursuant to and without amending or extending the tender offer.
Credit Suisse Securities (USA) LLC will serve as dealer manager for the tender offer, MacKenzie Partners, Inc. will serve as information agent for the tender offer and Computershare Trust company, N.A. will serve as depositary for the tender offer.
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a provider of end-to-end mortgage solutions through its subsidiary, PHH Mortgage. Its outsourcing model and proven expertise, combined with a strong commitment to operational excellence and customer service, has enabled PHH Mortgage to become one of the largest non-bank originators, servicers and subservicers of residential mortgages in the United States. PHH Mortgage currently provides mortgage solutions for the real estate market and financial institutions, and offers home financing directly to consumers.
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|Publication:||M2 Banking & Credit News (BCN)|
|Date:||Aug 14, 2017|
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