Onity Group accelerates capital restructuring in West Palm Beach

On September 30, 2024, Onity Group Inc., a prominent non-bank mortgage servicer and originator based in the United States, revealed a series of transactions designed to accelerate its capital restructuring. The company has entered into definitive agreements with Oaktree Capital Management to sell its 15% interest in MSR Asset Vehicle LLC for a cash payment expected to total approximately $49 million. This sale is anticipated to close in the fourth quarter of 2024, contingent upon regulatory approval and the successful completion of a debt financing arrangement. In addition to the MAV sale, Onity is also pursuing an asset acquisition from Mortgage Assets Management, LLC, which is expected to yield around $46 million in cash proceeds. This acquisition is projected to significantly reduce Onity's MSR debt by $73.4 million, allowing the company to utilize the cash proceeds to pay down corporate debt. The overall strategy reflects Onity's commitment to disciplined financial management and value creation for its shareholders. The company plans to redeem at least $150 million of its Onity Notes in the fourth quarter of 2024, further demonstrating its focus on improving its financial health. The transactions with Oaktree and the acquisition from MAM are seen as critical steps in enhancing Onity's income and cash flow in the future. Onity's management expressed gratitude to Oaktree for their continued support and emphasized the importance of these transactions in achieving their financial objectives. The company looks forward to providing further updates during its upcoming earnings conference call.