| 2018-08-09 07:59:20|
ASPS, RESI 07:59 08/09 08/09/18
Altisource announces sale of property management resources to Front Yard
Altisource Portfolio Solutions S.A. (ASPS) announced the sale of certain property management resources to Front Yard Residential Corporation (RESI) in accordance with the following key terms:Front Yard will make an upfront payment of $15M to Altisource with an additional $3less than to be paid upon the earlier of (1) five years, or (2) a Change of Control of Front Yard. Altisource will continue to provide the following services to Front Yard on an exclusive basis: Title insurance and escrow services for a period of four years; Auction, real estate brokerage, and preservation services on Front Yard's remaining legacy REO portfolio; and Asset Management services on approximately 150 rental assets identified by Front Yard for disposition. Altisource will support the transition of property management services to Front Yard's internal property manager until December 31, 2018, which may be extended by up to 90 days. Altisource will be restricted from selling its shares in Front Yard until December 31, 2018. Thereafter, Altisource will be permitted to sell in accordance with the share disposition schedule described in the Omnibus Amendment. Notwithstanding these restrictions, Altisource is permitted to sell shares under certain circumstances, including (a) to meet liquidity requirements, (b) to finance acquisitions, (c) for block transactions, or (d) a Change of Control of Front Yard. Altisource expects to recognize a gain from this transaction in the third quarter of 2018 and intends to use the $15M in initial cash proceeds from this transaction to repay its senior term loan.