Onity Group Inc. · NYSE:ONIT
Onity — Ocwen Financial — Merger or Acquisition (June 2010)
9 slides from Onity's merger presentation, Jun 2, 2010
Slide 1: Ocwen Acquisition Update
Exhibit 99.1 Ocwen Acquisition Update June 01, 2010 ©2010 Ocwen Financial Corporation. All rights reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Our presentation may contain certain forward-looking statements that are made pursuant to the Safe Harbor provisions of the federal securities laws. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking termin
Slide 3: Presenters
Presenters William C. Erbey Chairman & Chief Executive Officer Ronald M. Faris President David J. Gunter Chief Financial Officer
Slide 4: Deployment of Equity Raise
Deployment of Equity Raise Ocwen executed two acquisitions totaling $35 billion of UPB n We have fully deployed $274 million raised in August 2009 n We achieved all three objectives Ø Completed $410 million in TALF financing • Advance financing requirements met for then existing portfolio Ø Complete
Slide 5: HomEq Transaction Overview
HomEq Transaction Overview Transaction Overview & Rationale n Ocwen signed a definitive agreement to acquire the servicing portfolio belonging to HomeEq Servicing for $1.3 billion n The acquired portfolio has $28 billion in UPB and approximately $1.16 billion in servicer advances Transaction Structu
Slide 6: Saxon Transaction Overview
Saxon Transaction Overview Transaction Overview n Ocwen entered into agreements to acquire the rights to service $6.9 billion in UPB Transaction Structure & Financing n Deployed approximately $160 million of equity to fund the acquisition Timing n Entered into agreement on March 29, 2010 n The acqui
Slide 7: Acquisition Economics
Acquisition Economics n The HomeEq acquisition pricing includes one time expenses of $60 MM Ø Subject to purchase accounting adjustments Ø Suppress incremental earnings for 2010 Ø Deal priced to provide targeted pre-tax ROE n Cash flow from operations provides capability to repay the $350 MM syndica
Slide 8: Transaction Sources & Uses
Transaction Overview Transaction Sources & Uses n Ocwen intends to issue a $350 million Senior Secured Term Loan Facility in June 2010 Ø Will replace the $140 million bridge n The expected use of proceeds will include the acquisition of HomeEq which is expected to close in 3Q 2010 Ø Barclays will pr
Slide 9: Delivering on Strategy to Increase UPB
Delivering on Strategy to Increase UPB Unpaid principal balance at period-end 1. Reflects $6.9 billion in UPB that Ocwen acquired during April and May 2010.