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New Residential Investment Corp. (NRZ)

- NYSE
  • Tue, Apr. 7, 9:46 AM
    • New Residential (NRZ +2.7%) initially knee-jerked lower last night and in the premarket following a sizable secondary offering used to finance its asset purchase of basically all of Home Loan Servicing Solutions (HLSS -4%). The stock, however, has now turned higher as investors focus on the improved pricing for NRZ - getting HLSS for $17.08 instead of $18.25.
    • Ocwen Financial (OCN +10.3%) is surging as New Residential agrees to extend contracts allowing it to service HLSS's MSRs, and on a two-year agreement not to transfer servicing rights away from Ocwen. Altisource Portfolio Solutions (ASPS +17.6%), Altisource Asset Management (AAMC +9.8%).
    • Previously: Quickie marriage for New Residential and Home Loan Servicing; Ocwen flys on NRZ partnership (April 6)
    | 7 Comments
  • Mon, Apr. 6, 5:20 PM
    • The two terminate late February's merger agreement in which New Residential (NYSE:NRZ) was going to purchase Home Loan Servicing Solutions (NASDAQ:HLSS) for $18.25 per share in cash, or roughly $1.3B, and instead enter an asset purchase agreement in which NRZ has paid $1.2B or $17.08 for all 71M shares of HLSS. Adjusting for cash and repayment of HLSS debt, the price works out to about $1B in cash and 28.3M newly issued shares of NRZ - roughly $1.4B.
    • The deal had the approval of both boards and did not require a shareholder vote.
    • In addition, New Residential agrees to a multiyear extension of the servicing contracts with Ocwen Financial (NYSE:OCN).
    • Alongside, New Residential announces a 40M share secondary - 28.3M shares being sold by HLSS and another 11.7M shares by the company. The underwriter greenshoe is another 6M shares.
    • NRZ -3.8% after hours to $14.79, Ocwen +9.2%
    • HLSS closed today at $17.23.
    | 17 Comments
  • Mon, Feb. 23, 11:07 AM
    | 1 Comment
  • Mon, Feb. 23, 9:43 AM
    • Investors do the math on New Residential's (NRZ +4.6%) purchase of Home Loan Servicing Solutions (HLSS +8.8%), and decide the acquirer has made a nice deal for itself (the stock initially knee-jerked lower in premarket action).
    • Via twitter, Tom Adams relays the thoughts of value investor Mangrove Partners. The Cliff's Notes: A great deal for New Residential, but potential trouble for Ocwen Financial (OCN -5.3%).
    • NRZ's purchase of HLSS, says Mangrove, increases the chances Ocwen is terminated as servicer, costing it about $650M in earnings via fee income and cleanup costs. Basically, New Residential and its manager Fortress Investments (FIG +1.7%) could end up with Ocwen's servicing rights for free while buying Home Loan Servicing at book value.
    • A dial-in conference call with the NRZ and HLSS management teams is set for 11 ET.
    • Previously: New Residential scoops up Home Loan Servicing (Feb. 23)
    • Nationstar Mortgage (NSM +9.8%), Walter Investment (WAC -4.2%), Altisource Portfolio Solutions (ASPS -0.9%)
    | 6 Comments
  • Mon, Feb. 23, 7:32 AM
    • There's finally a deal for one of the troubled Ocwen Financial family of businesses, with New Residential (NYSE:NRZ) agreeing to buy Home Loan Servicing (NASDAQ:HLSS) for $18.25 per share in cash - a total price of about $1.3B.
    • The deal is expected to close in Q2.
    • New Residential CEO Michael Nierenberg: "The acquisition will significantly add to the value of our book of mortgage servicing assets and expand our relationships with mortgage servicers to include both Nationstar Mortgage and Ocwen Financial."
    • A steal? HLSS has trundled along between $20 and $25 per share for the last two years (while paying a sizable dividend). It fell to as low as about $10 earlier this year amid Ocwen's regulatory issues.
    • Source: Press release
    • HLSS +6%, NRZ -2.4% premarket
    • Others: Ocwen (NYSE:OCN+2.1%
    | 11 Comments
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Company Description
New Residential Investment Corp, is a real estate investment trust. It invests in residential mortgage related assets.
Sector: Financial
Country: United States