Nationstar to Raise $300 Million, Eyes Future Acquisitions

Mortgage servicing giant Nationstar Mortgage Holdings, Inc. (NYSE: NSM) announced today that two of its wholly-owned subsidiaries intend to sell a $300 million in Senior Notes toward the funding of future expansion.

The subsidiaries, Nationstar Mortgage LLC and Nationstar Capital Corporation, intend to sell the notes due 2022 in an underwritten public offering. 

The notes will be unsecured and will be guaranteed on a senior basis by Nationstar, Nationstar Sub1 LLC, Nationstar Sub2 LLC and certain of the company’s wholly-owned subsidiaries. 

Nationstar Capital Corporation intends to use the net proceeds from this offering for general corporate purposes, which may include future acquisitions and transfers of servicing portfolios, the company said. The proceeds might also be used toward the acquisition of certain residential mortgage servicing assets from Bank of America, National Association, or related third parties. 

The company has grown its reverse mortgage presence in recent months. It purchased Bank of America’s reverse mortgage servicing rights upon the company exiting the business in 2011 as well as the rights to MetLife’s reverse mortgage servicing portfolio when MetLife shuttered its reverse lending department in 2012. 

Most recently, Nationstar acquired Greenlight Financial, including the company’s reverse mortgage division, in a deal valued up to $75 million.  

The recent string of acquisition activity has helped Nationstar become one of the largest servicers in the U.S. 

As of March 31, 2013, Nationstar had a servicing portfolio of more than 1.9 million residential mortgages with an aggregate of $312 billion in unpaid principal balance.

Written by Jason Oliva

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