New Residential Acquires Most Of Home Loan Servicing For $1.4 Bln.

(RTTNews) - New Residential Investment Corp (NRZ) on Monday said it has acquired via an asset purchase agreement, most of the assets and assumed most of the liabilities of Home Loan Servicing Solutions Ltd (HLSS). Concomitantly, New Residential and HLSS mutually terminated the merger deal originally announced in February.

Under the terms of the asset purchase deal, New Residential said it paid HLSS an equity purchase price of about $1.2 billion, or $17.08 per HLSS share on 71 million HLSS shares.

With adjustments for cash and the repayment of HLSS debt, New Residential paid HLSS a total purchase price of about $1.4 billion, comprised of about $1 billion of cash and 28.2 million newly issued shares of New Residential.

The asset purchase was approved by the boards of both companies and did not require shareholder approval.

Separately, New Residential agreed to a multi-year extension of the servicing contracts with Ocwen Financial Corp (OCN), providing for a long-term partnership between New Residential and Ocwen.