SEC Filing Summary: New Residential Investment Corp. (NRZ)
Business Context and Reporting Period
This Form 8-K was filed by New Residential Investment Corp. (NRZ) on November 6, 2019, reporting events occurring on October 31, 2019. The filing details a material definitive agreement involving the issuance of debt securities by an indirect subsidiary, NRZ Advance Receivables Trust 2015-ON1.
Key Financial Metrics and Transaction Details
- Debt Issuance: $300,000,000 of rated receivables-backed term notes (Series 2019-T5 Notes).
- Interest Rates: Fixed rates ranging from 2.42% to 4.38% per annum, varying by class.
- Use of Proceeds: Acquired receivables from another subsidiary, which subsequently used the funds to repay existing indebtedness.
- Collateral: Secured by servicer advance receivables and accrued servicing fees from PHH Mortgage Corporation, Shellpoint Mortgage Servicing, and New Residential Mortgage LLC.
- Revolving Period: Ends on October 15, 2021.
- Amortization: If outstanding after the revolving period, the Issuer must repay one-twelfth of the remaining principal balance monthly.
Note: This filing does not provide specific values for revenue, net profit, operating cash flow, or overall liquidity metrics for the reporting period.
Material Changes and Covenants
The transaction represents a new direct financial obligation. The notes cross-collateralize five other series of outstanding notes previously issued by the Issuer. The agreement includes standard affirmative covenants (reporting, compliance with laws) and negative covenants (limitations on amendments to servicing agreements).
Risks, Contingencies, and Default Provisions
Events of default or target amortization events include:
- Failure to satisfy interest coverage or collateral performance tests.
- Non-payment of principal or interest.
- Insolvency of key subsidiaries (PMC, HLSS, Shellpoint, NRM).
- Failure to comply with deposit and remittance requirements.
Consequences of default may include interest rate increases, rapid amortization, or acceleration of principal repayment. A bankruptcy event triggers automatic acceleration and termination of commitments.
Investor Verification Checklist
- Verify the current status of the collateral pool (servicer advance receivables) and its performance against the collateral performance test.
- Confirm the impact of the $300 million issuance on the company's overall leverage and interest coverage ratios.
- Review the specific terms of the cross-collateralization with the five other outstanding note series.
- Monitor the revolving period end date (October 15, 2021) and the company's ability to refinance or repay the principal thereafter.