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PHH Corporation Announces Amendment and Extension of Revolving Credit Facility

^{Published on 2010-06-30 14:35:37 - Market Wire}
 

MT. LAUREL, N.J.--([ BUSINESS WIRE ])--PHH Corporation (NYSE:PHH) announced today that, on June 25, 2010, it entered into a Fourth Amendment to the Amended and Restated Competitive Advance and Revolving Credit Agreement, dated as of January 6, 2006 with certain lenders and agents, and JPMorgan Chase Bank, N.A., as lender and administrative agent (the aAmended Revolving Credit Facilitya). Under the terms of the Amended Revolving Credit Facility, PHHa™s maximum unsecured borrowing capacity was immediately reduced to $805 million and will be further reduced to $525 million effective January 6, 2011. In consideration for the reduction of the commitments of certain lenders in the Amended Revolving Credit Facility, PHH extended the maturity of that facility to February 29, 2012 with an option for an additional one year term at PHHa™s request, provided that certain conditions are met. The Amended Revolving Credit Facility also contains certain other financial and non-financial covenants.

Commenting on the extension, Jerome Selitto, chief executive officer, said, aIn addition to the closing of the Amended Revolving Credit Facility, we have closed approximately $2.8 billion of asset-backed financing transactions over the past six months, which has been used to either extend maturities on existing debt, replace and diversify funding sources, or pay down outstanding balances on the revolver. Putting in place a solid, longer term funding plan, and paying down and refinancing our debt have been major objectives in 2010. Under the Amended Revolving Credit Facility, we have maintained our ability to borrow on an unsecured basis, and we continue to evaluate additional opportunities to access the markets to extend maturities and enhance liquidity to finance our business growth.a

About PHH Corporation

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary, PHH Mortgage Corporation, is one of the top five retail originators of residential mortgages in the United States¹, and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada. For additional information about the company and its subsidiaries, please visit our website at [ www.phh.com ].

¹ Inside Mortgage Finance, Copyright 2010

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