The field gets smaller and smaller!
Here’s an article off the PR Newswire:
Origen Financial Announces Agreement to Sell Servicing Platform Assets to Green Tree Servicing LLC
SOUTHFIELD, Mich., April 30 /PRNewswire-FirstCall/ -- Origen Financial,
Inc. (Nasdaq: ORGN), a real estate investment trust that is in the business
of originating and servicing manufactured housing loans, today announced it
has entered into an agreement for the sale of its servicing platform assets
to Green Tree Servicing LLC (“Green Tree”), a leading servicer of
manufactured housing loans, as well as other residential and consumer
loans. Upon completion, the transaction will include the transfer of
approximately $1.6 billion of manufactured housing loans. Proceeds from the
sale would be used to retire a $15 million loan secured by the servicing
assets, to partially repay a $46 million secured loan facility entered into
in April 2008 and for working capital. As part of the sale transaction,
Green Tree will assume the lease for Origen’s Fort Worth, Texas servicing
facility.
Completion of the sale is conditioned on approval by Origen's
stockholders, consents by third parties, including trustees of
securitization trusts and rating agencies, and other customary closing
conditions for transactions of this type. Origen expects to present the
proposed sale for approval at its annual meeting of stockholders to be held
in late June 2008. Certain of Origen’s executive management and each of
Origen’s directors have entered into a voting agreement in support of the
transaction. There is no assurance that the sale transaction will be
completed.
Ronald A. Klein, Origen's Chief Executive Officer, stated, "As
previously announced on March 13, 2008, recent and current conditions in
the credit markets have adversely impacted Origen’s ability to originate
loans for its own portfolio. As a result, Origen has recorded significant
losses from the write off of goodwill, suspended origination of new loans
for its owned-loan portfolio, sold its recently originated unsecuritized
loans at a loss and used the proceeds of that sale and a new secured credit
facility to pay off our previous credit facilities. Our Board has now
determined that it is in the best interests of our stockholders to sell the
servicing platform to Green Tree."
Mr. Klein added that, "With the agreement to sell our servicing
platform, we are focused on trying to sell our origination platform assets
and right size our employee and cost structure to accommodate the continued
management of our $1 billion securitized loan portfolio. The servicing sale
does not reflect on the credit performance or long-term realizable value of
Origen’s loan portfolio, which in management’s opinion continues to remain
very high. We are pleased that in Green Tree, we have a new servicer for
our loans that enjoys a well-deserved reputation for excellence and
expertise as a manufactured home loan servicer."
About Green Tree Servicing LLC
Green Tree, a privately held financial services organization
headquartered in St. Paul, Minnesota, services the nation’s largest
portfolio of secured manufactured housing consumer loans and installment
contracts, and is a leading servicer of residential mortgage loans and
other consumer loan products. Green Tree operates service centers in Tempe,
Arizona and Rapid City, South Dakota as well as 30 regional offices located
throughout the United States. Upon completion of this transaction, combined
with other recent acquisitions, Green Tree’s loan servicing portfolio will
grow to over $22 billion. For more information about Green Tree, please
visit http://www.gtservicing.com. ORGN-G
About Origen Financial, Inc.
Origen is an internally managed and internally advised company that has
elected to be taxed as a real estate investment trust. Origen is based in
Southfield, Michigan. For more information about Origen, please visit
http://www.origenfinancial.com.
Forward-Looking Statements
This press release contains various "forward-looking statements" within
the meaning of the Securities Act of 1933 and the Securities Exchange Act
of 1934, and Origen intends that such forward-looking statements will be
subject to the safe harbors created thereby. The words “will,” “may,”
“could,” “expect,” “anticipate,” “believes,” “intends,” “should,” “plans,”
“estimates,” “approximate” and similar expressions identify these
forward-looking statements. These forward-looking statements reflect
Origen’s current views with respect to future events and financial
performance, but involve known and unknown risks and uncertainties, both
general and specific to the matters discussed in this press release. These
risks and uncertainties may cause Origen’s actual results to be materially
different from any future results expressed or implied by such
forward-looking statements. Such risks and uncertainties include, among
others, the foregoing assumptions and those risks referenced under the
headings entitled “Factors That May Affect Future Results” or "Risk
Factors" contained in Origen’s filings with the Securities and Exchange
Commission (the “SEC”). In addition, as reported in this release, Origenis
selling a substantial portion of its assets, which injects considerable
uncertainty beyond risks associated with a continuing business enterprise.
The forward-looking statements contained in this press release speak only
as of the date hereof and Origen expressly disclaims any obligation to
provide public updates, revisions or amendments to any forward- looking
statements made herein to reflect changes in Origen’s expectations or
future events.
Additional Information and Where it Can Be Found
In connection with the proposed sale transaction, Origen will file a
proxy statement and other materials with the Securities and Exchange
Commission. WE URGE INVESTORS TO READ THE PROXY STATEMENT AND THESE OTHER
MATERIALS CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT ORIGEN AND THE PROPOSED TRANSACTION. Investors
will be able to obtain free copies of the proxy statement and a related
proxy card (when available) as well as other filed documents containing
information about Origen at http://www.sec.gov, the SEC’s website. Free
copies of Origen’s SEC filings are also available at
http://www.origenfinancial.com, Origen’s website.
Origen and its executive officers and directors may be deemed, under
SEC rules, to be participants in the solicitation of proxies from Origen’s
stockholders with respect to the proposed sale transaction. Information
regarding the officers and directors of Origen is included in its Amendment
No. 1 to Annual Report for the year ended December 31, 2007 on Form 10-K/A
filed with the SEC on April 29, 2008. More detailed information regarding
the identity of potential participants, and their direct or indirect
interests, by securities, holdings or otherwise, will be set forth in the
proxy statement and other materials to be filed with the SEC in connection
with the proposed sale transaction.