Walter Investment says Barclays to increase financing available
On September 13, Walter Investment Management entered into a commitment letter with Barclays Bank . Pursuant to the Commitment Letter, Barclays has agreed to increase the financing available to the company under the following facilities: 1. the Amended and Restated Master Repurchase Agreement, dated as of April 23, 2015 among Barclays, as purchaser and agent, and Ditech Financial LLC, as seller, and the Amended and Restated Master Repurchase Agreement, dated as of May 22, among Reverse Mortgage Solutions, Inc., as a seller, RMS REO BRC, LLC, as a seller, and Barclays, as purchaser and agent.Barclays has committed to provide the company with an upsize of the Facilities with a maximum increase amount of $300,000,000 on the terms and subject to the conditions set forth in the Commitment Letter, with a closing date any time between the date of the Commitment Letter and January 25, 2018. The company may effectuate the Upsize as an increase of up to $150,000,000 to the Ditech Facility and up to $150,000,000 to the RMS Facility, up to a total of $300,000,000. In conjunction with any amendment to effectuate the Upsize, the termination date of each Facility being amended will be extended to August 25, 2018, provided that, after May 21, 2018, the Maximum Aggregate Purchase Price (as such term is defined on the date hereof in the RMS Facility or the Ditech Facility, as applicable) will equal the amount of the Upsize with respect to the related Facility.The company has experienced reductions in availability under its warehouse and advance facilities, through reductions in the company's advance rates, changes to the terms of such facilities and otherwise, which has negatively impacted the company's available liquidity and capital resources. The Upsize is expected to better position the company to ensure it has sufficient liquidity in the near-term, though no assurance can be given that the company will be successful in maintaining adequate financing capacity with its current or prospective lenders.