Walter Investment to Acquire GTCS Holdings From Centerbridge

Walter Investment Management Corp., the Tampa, Florida-based mortgage servicer and investor, agreed to acquire GTCS Holdings LLC from Centerbridge Capital Partners LLC for $745 million as it expands loan servicing.

The entire transaction, including debt, is valued at $1.065 billion, Walter said today in a regulatory filing. GTCS, known as Green Tree and based in St. Paul, Minnesota, provides services such as billing and collection on a $37 billion portfolio, including residential mortgages, manufactured housing loans and consumer loans, the filing shows. After the deal, Walter will no longer qualify as a real estate investment trust.

“With the acquisition of Green Tree, Walter Investment will be uniquely positioned to capture a significant share of the growing specialty mortgage-services sector,” said Mark J. O’Brien, Walter’s chairman and chief executive officer, in a separate statement.

Walter will issue 1.8 million shares to the seller and $765 million in new debt to acquire Green Tree’s equity, repay Green Tree’s obligations and cover expenses of the transaction, according to the statement.

“This acquisition allows Walter to capitalize on the company’s strong market share and fantastic management,” New York-based Centerbridge said in a statement. The private-equity company purchased Green Tree for an undisclosed amount in 2007.

Credit Suisse Group AG advised Walter, and Simpson Thacher & Bartlett LLP provided legal counsel. Morgan Stanley advised Green Tree with Willkie Farr & Gallagher LLP providing legal counsel. Bank of America Merrill Lynch advised the seller.

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