Nationstar Mortgage Holdings Inc. (NSM: Quote) announced the pricing of $300 million in asset-backed term notes to be issued by Nationstar Agency Advance Funding Trust. The issuance and sale of the Notes is subject to customary closing conditions and is expected to close on January 31, 2013.
The Notes carry a weighted average fixed interest rate of 1.46% and a weighted average term of 3.0 years. The Notes will replace $300 million in existing Agency servicing advance facilities that carried a weighted average floating rate of Libor plus 2.86%, or 3.10% in total, resulting in a reduction in rate of 1.65% as of January 24, 2013.
Additionally, the effective advance rate of the new facility will be approximately 94%, an increase over the effective advance rate on the facilities being replaced. Nationstar is developing a programmatic Term Asset-Backed Security or “ABS” issuance program which will allow it to efficiently finance current and future acquisitions of Agency and non-Agency servicing advance assets.
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by RTT Staff Writer
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