11:43 AM EDT, 10/21/2024 (MT Newswires) -- Onity Group ( ONIT ) said Monday a special purpose subsidiary of its PHH unit, PHH Escrow Issuer, plans to offer $475 million of senior notes due 2029.

The proceeds from the sale, along with additional cash from Onity ( ONIT ), will be placed into escrow pending certain conditions, including the sale of Onity's ( ONIT ) 15% stake in MSR Asset Vehicle to Oaktree Capital Management.

Once conditions are met, the funds will be released to PHH, Onity ( ONIT ) said. PHH then will co-issue the notes, and Onity ( ONIT ) and its subsidiaries will guarantee them.

The proceeds will be used to redeem PHH Mortgage's 7.875% senior notes due 2026 and Onity's ( ONIT ) 12%/13.25% senior second lien notes due 2027.

Onity ( ONIT ) shares fell 1.2% in recent Monday trading.

Price: 29.98, Change: -0.36, Percent Change: -1.20