Nationstar Mortgage Holdings (NSM) has priced $200 million of senior notes that will be issued for corporate use including future servicing acquisitions.
The net proceeds from this offering will be used for corporate use such as future acquisitions and transfers of servicing portfolios including the acquisition of certain residential mortgage servicing assets from companies such as Bank of America (BAC).
The offering of the $200 million in notes came after an initial offering of $150 million in notes announced Thursday. The company priced additional notes to meet market demand.
The additional notes are a follow-on issue to issuers’ $400 million senior note issued on Feb. 7 and will form a single series of debt securities with the existing notes.
The additional notes will be unsecured as well as guaranteed on a senior basis by Nationstar and it’s the company’s wholly owned subsidiaries.
Nationstar has become one of the largest mortgage servicers in the market, reporting 161% revenue growth for fiscal year 2012 due to servicing fees and origination revenue.
The company also purchased Bank of America’s reverse mortgage servicing rights, creating a significant increase in its servicing portfolio.