MT. LAUREL, N.J.--(Business Wire)--PHH Corporation (NYSE:PHH) ("PHH" or the "Company") announced
today that it has received payment of the $50 million reverse
termination fee from Blackstone Capital Partners V L.P.
("Blackstone"), the private equity fund affiliated with the Blackstone
Group L.P., in connection with the previously announced termination of
(i) the merger agreement between PHH and General Electric Capital
Corporation ("GECC") and (ii) the agreement pursuant to which
Blackstone was to acquire PHH's mortgage banking business from GECC.
Blackstone paid this amount in accordance with its contractual
obligations to PHH. The Company has agreed to pay up to $4.5 million
in payment of the fees of third-party consultants retained by
Blackstone in connection with the contemplated transactions and will
be receiving the work product that those consultants provided to
Blackstone.
Mr. Chinh Chu, Senior Managing Director of Blackstone stated, "We
share PHH's disappointment that this transaction was not able to be
completed. PHH operates one of the premier mortgage banking platforms
in the country, and they have demonstrated impressive stability and
resilience in light of the turbulent market conditions affecting their
industry. It is especially regrettable that, even for a company of
PHH's quality, acquisition financing for any part of the mortgage
sector was unavailable as a result of the sub-prime crisis."
Mr. A.B. Krongard, non-executive Chairman of the Board of the
Company, commented, "I am pleased that Blackstone promptly paid the
reverse termination fee. Over the last several months, Blackstone
sought to find a way to secure replacement financing for their
transaction in the face of unprecedented disruption in the mortgage
financing markets. Despite their efforts with both their original
lender group and other possible lenders, an unprecedented crisis in
confidence in the mortgage sector no doubt made it impossible for them
to secure the committed funding as originally contemplated in March.
We remain confident in our business plan in both the fleet and
mortgage services businesses. The Company can now move forward and
continue to deliver value for our stockholders and clients."
About PHH Corporation
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a
leading outsource provider of mortgage and vehicle fleet management
services. Its subsidiary, PHH Mortgage, is one of the top ten retail
originators of residential mortgages in the United States(1), and its
subsidiary, PHH Arval, is a leading fleet management services provider
in the United States and Canada. For additional information about the
Company and its subsidiaries please visit our website at www.phh.com.
(1) Inside Mortgage Finance, Copyright 2007
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements are subject to known and unknown risks, uncertainties and
other factors which may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. You should understand that these
statements are not guarantees of performance or results and are
preliminary in nature. Statements preceded by, followed by or that
otherwise include the words "believes", "expects", "anticipates",
"intends", "projects", "estimates", "plans", "may increase", "may
result", "will result", "may fluctuate" and similar expressions or
future or conditional verbs such as "will", "should", "would", "may"
and "could" are generally forward-looking in nature and not historical
facts.
You should consider the areas of risk described under the heading
"Cautionary Note Regarding Forward-Looking Statements" in our periodic
reports filed with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended, and those risk factors
included as "Item 1A. Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2006 and Quarterly Report on Form 10-Q
for the quarter ended September 30, 2007, in connection with any
forward-looking statements that may be made by us and our businesses
generally. Except for our ongoing obligations to disclose material
information under the federal securities laws, we undertake no
obligation to release publicly any updates or revisions to any
forward-looking statements, to report events or to report the
occurrence of unanticipated events unless required by law.
PHH Corporation
Investors:
Nancy R. Kyle, 856-917-4268
or
Media:
Karen K. McCallson, 856-917-8679
Copyright Business Wire 2008
