04:49 AM EDT, 10/24/2024 (MT Newswires) -- Onity Group ( ONIT ) said Wednesday it priced an offering of $500 million of 9.875% senior notes due 2029 at 99.556% of par.

The notes will initially be issued by PHH (PHH) subsidiary PHH Escrow Issuer LLC.

Proceeds from the sale, along with additional cash from Onity ( ONIT ), are expected to be placed in escrow pending the consummation of the recently announced sale by Onity ( ONIT ) of its 15% ownership interest in MSR Asset Vehicle to funds affiliated with Oaktree Capital Management and other conditions, the company said.

Upon satisfaction of the escrow conditions, the proceeds will then be released to PHH, which, along with Onity ( ONIT ), will become a co-issuer of the notes.

The offering is set to close Nov. 6.

Net proceeds from the offering will be used, together with the net proceeds from the MSR Asset Vehicle sale and cash on hand, to redeem all of PHH Mortgage's outstanding 7.875% senior notes due 2026 and all of Onity's ( ONIT ) outstanding 12.00%/13.25% senior second lien notes due 2027.