Walter closes private RMBS to help fund Green Tree purchase
Walter Investment Management (WAC) privately placed $102 million in residential mortgage backed securities Friday. The real estate investment trust put forth the offering to help fund the acquisition of Green Tree Credit Solutions. "The securitization of the unencumbered assets brings us one step closer to completing the few outstanding items required to conclude the transaction," said Mark O'Brien, Walter Investment CEO. "We are quite pleased to have been able to monetize these assets at a fair price without having to sell them, which allows us to retain the valuable residual interest in the assets." Walter Investment entered into a purchase agreement with Green Tree servicing, d.b.a. GTCS Holdings as the Tampa, Fla.-based real estate investment trust looks to expand its business into special servicing. The deal, priced at $1.065 billion, was unanimously approved by the Walter board of directors, and is expected to close in the third quarter of 2011. Walter Investment will issue about $1.8 million shares of common stock to GTCS' seller, as well as assume $20 million of the acquired company's existing debt. Walter is using $765 million in cash from Credit Suisse and The Royal Bank of Scotland to complete the purchase transaction. Write to Jacob Gaffney. Follow him on Twitter @JacobGaffney.