Onity Group closes $200 million senior notes offering

Onity Group Inc. (NYSE: ONIT) announced the completion of a $200 million senior notes offering through its subsidiaries PHH Corporation and PHH Escrow Issuer LLC on January 30.

The 9.875% Senior Notes due 2029 were issued as an additional offering to the $500 million aggregate principal amount of similar notes originally issued on November 6, 2024. The combined notes now form a single series totaling $700 million.

Glen A. Messina, Chair, President and CEO of Onity Group, stated the effective yield on this debt issuance was nearly 148 basis points lower than the original debt issuance in November 2024.

The notes are guaranteed on a senior secured basis by Onity and certain subsidiaries of PHH, including PHH Mortgage Corporation and PHH Asset Services LLC. Net proceeds will be used for general corporate purposes, including the repayment of mortgage servicing rights indebtedness.

The notes were sold to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States under Regulation S. The securities were not registered under the Securities Act of 1933.

Onity Group operates as a non-bank financial services company providing mortgage servicing and origination solutions through PHH Mortgage and Liberty Reverse Mortgage. The company is headquartered in West Palm Beach, Florida, with operations in the United States, U.S. Virgin Islands, India and the Philippines.

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