Exhibit 99.1
Ocwen Acquisition Update
June 01, 2010
©2010 Ocwen Financial Corporation. All rights reserved.
Forward-Looking Statements
Our presentation may contain certain forward-looking statements that are made pursuant to the Safe Harbor provisions of the federal securities laws. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. They may involve risks and uncertainties that could cause the company’s actual results to differ materially from the results discussed in the forward-looking statements.
Presenters
William C. Erbey
Chairman & Chief Executive Officer
Ronald M. Faris
President
David J. Gunter
Chief Financial Officer
Deployment of Equity Raise
Ocwen executed
two acquisitions
totaling $35
billion of UPB
| n | We have fully deployed $274 million raised in August 2009 |
| n | We achieved all three objectives |
| Ø | Completed $410 million in TALF financing |
| • | Advance financing requirements met for then existing portfolio |
| Ø | Completed 19,612 modifications in Q1 |
| • | Industry leading HAMP conversions |
| Ø | Completed $6.9 billion acquisition on May 3rd |
| n | Signed $28 billion acquisition on May 28th |
| n | Acquisition economics in line with ROE expectations |
HomEq Transaction Overview
Transaction
Overview &
Rationale
| n | Ocwen signed a definitive agreement to acquire the servicing portfolio belonging to HomeEq Servicing for $1.3 billion |
| n | The acquired portfolio has $28 billion in UPB and approximately $1.16 billion in servicer advances |
Transaction
Structure &
Financing
| n | The seller’s parent, Barclays, will provide seller financing for the transaction in the form of a $905 million Servicer Advance Facility and a $140 million bridge financing |
| n | In addition, Ocwen seeks to raise a $350 million Senior Secured Term Loan Facility to replace the bridge financing and as additional acquisition financing |
Timing
| n | The transaction is expected to close in 3Q 2010 |
Saxon Transaction Overview
Transaction
Overview
| n | Ocwen entered into agreements to acquire the rights to service $6.9 billion in UPB |
Transaction
Structure &
Financing
| n | Deployed approximately $160 million of equity to fund the acquisition |
Timing
| n | Entered into agreement on March 29, 2010 |
| n | The acquisition was completed in two phases ending on May 3, 2010 |
Acquisition Economics
| n | The HomeEq acquisition pricing includes one time expenses of $60 MM |
| Ø | Subject to purchase accounting adjustments |
| Ø | Suppress incremental earnings for 2010 |
| Ø | Deal priced to provide targeted pre-tax ROE |
| n | Cash flow from operations provides capability to repay the $350 MM syndicated bank loan in 13 months |
| n | The effective equity for the transaction is $308 MM |
| n | Transaction highly accretive |
Transaction Overview
Transaction Sources & Uses
| n | Ocwen intends to issue a $350 million Senior Secured Term Loan Facility in June 2010 |
| Ø | Will replace the $140 million bridge |
| n | The expected use of proceeds will include the acquisition of HomeEq which is expected to close in 3Q 2010 |
| Ø | Barclays will provide $905 million of servicer advance financing |
Sources
Uses
| 1. | HomeEq Servicing acquisition funding uses based on total purchase price of HomeEq business plus estimated restructuring costs and transaction expenses. Total purchase price of $1.3 billion includes $1.16 billion of servicer advance receivables. |
Delivering on Strategy to Increase UPB
Unpaid principal balance at period-end
| 1. | Reflects $6.9 billion in UPB that Ocwen acquired during April and May 2010. |
