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| WAC > SEC Filings for WAC > Form 8-K on 4-Dec-2012 | All Recent SEC Filings |
4-Dec-2012
Entry into a Material Definitive Agreement, Termination of a Ma
On November 28, 2012, Walter Investment Management Corp. (the "Company") entered into a Credit Agreement among the Company, the lenders party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other parties party thereto (the "Walter Credit Agreement").
The Walter Credit Agreement provides for a secured term loan in the amount of $700.0 million (the "Secured Term Loan") and a secured revolving credit facility of up to $125.0 million (the "Secured Revolving Facility" and, together with the Secured Term Loan, the "Facility"). Up to $25.0 million of the Secured Revolving Facility is available for letters of credit. The Facility matures on November 28, 2017. The Secured Term Loan bears interest at a rate per annum equal to, at the option of the Company, LIBOR plus 4.50%, with a LIBOR "floor" of 1.25%, or an Alternate Base Rate plus 3.50 %. The Company will also pay a commitment fee of 0.50% per annum on the unused portion of the Secured Revolving Facility. In the event the Secured Term Loan is prepaid, refinanced, substituted or replaced (including by way of amendment) in whole or in part prior to November 28, 2013 concurrently with the inccurrence of indebtendness with a lower all-in yield than that of the Secured Term Loan, any amounts so prepaid, refinanced, substituted or replaced will be subject to a prepayment fee of 1.00%.
The Walter Credit Agreement contains affirmative and negative covenants and representations and warranties customary for financings of this type and requires that the Company maintain certain leverage ratio and interest expense coverage ratio levels. The Facility is guaranteed by substantially all wholly-owned subsidiaries of the Company and secured by a first priority pledge on substantially all of the assets of the Company and the subsidiary guarantors, in each case subject to certain exceptions.
The foregoing description of the Walter Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Walter Credit Agreement which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.
On November 28, 2012, the Company terminated all commitments and repaid all amounts owed under its existing First Lien Credit Agreement, dated as of July 1, 2011.
The description of the Walter Credit Agreement in Item 1.01 of this Current Report on Form 8-K, including the exhibits incorporated therein, are incorporated in their entirety into this Item 2.03 by reference.
On December 4, 2012, the Company issued a press release announcing the Company's entry into Secured Term Loan and Revolving Credit Facility. A copy of the press release is attached as Exhibit 99.1.
(d) Exhibits
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