The Firm is representing Walter Investment Management Corp. (NYSE: WAC) (“Walter Investment”) in connection with its definitive agreement to purchase Reverse Mortgage Solutions, Inc. (“RMS”) in a transaction valued at $120 million. The consideration to be paid by Walter Investment is expected to consist of $60 million in cash, Walter Investment common stock valued at $25 million and $35 million aggregate principal amount of MSR notes of a subsidiary of Walter Investment. The transaction is subject to receipt of governmental approvals, third-party consents and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2012.
Walter Investment, based in Tampa, FL, is an asset manager, mortgage servicer and mortgage portfolio owner specializing in less-than-prime, non-conforming and other credit-challenged mortgage assets. Walter Investment has over 2,600 employees and services a diverse loan portfolio. RMS, based in Spring, Texas, provides a full suite of services to the reverse mortgage sector including servicing, sub-servicing, loan origination and securitization, and technology.
The Simpson Thacher team includes Peter Gordon, Michael Holick and Chelsea Freeman (M&A); David Eisenberg (Credit); Rob Holo and Adam Wells (Tax); David Rubinsky and Douglas Tang (Executive Compensation and Employee Benefits); Rise Norman and Ellen Smiley (Capital Markets); Jodie Pimentel (Intellectual Property); and Kenneth Ehrhard (HSR).
