Onity Group Announces Offering of $150 Million of Senior Notes Due 2029

WEST PALM BEACH, Fla., January 26, 2026 — Onity Group Inc. (NYSE: ONIT) (“Onity” or the “Company”) today announced that its subsidiaries PHH Corporation and PHH Escrow Issuer LLC (collectively, the “Issuers”) have launched an offering of $150 million in aggregate principal amount of 9.875% Senior Notes due 2029 (the “PHH Senior Notes”). The offering represents an additional issuance of senior secured debt and is being undertaken subject to market and other customary conditions.

Strategic Purpose of the Offering

The primary purpose of this debt issuance is to support Onity Group’s long-term financial strategy. The net proceeds from the offering will be used for general corporate purposes, including the repayment of certain indebtedness of PHH Mortgage Corporation and PHH Asset Services LLC. This indicates that the company is focusing on optimizing its debt structure and strengthening its balance sheet as it looks toward the future.

The offering of additional senior notes also helps extend Onity’s maturity profile for outstanding debt, which can enhance capital flexibility and provide additional runway for growth initiatives or operational investments without imminent refinancing pressures. This is important for a company operating in the complex and interest rate-sensitive mortgage servicing sector.

Details of the Senior Notes

The PHH Senior Notes are being issued at a fixed interest rate of 9.875% and will mature in the year 2029. These notes are structured to form a single series with an existing tranche of 9.875% Senior Notes due 2029 that was originally issued on November 6, 2024. Together with the existing issuance, this will bring the total principal amount of the combined series to approximately $650 million, assuming full issuance under currently planned terms.

One key aspect of the offering is that the PHH Senior Notes are guaranteed on a senior secured basis by Onity Group and certain of its subsidiaries, including PHH Mortgage Corporation and PHH Asset Services LLC. These guarantees help protect noteholders by securing repayment and establishing priority claims on company assets in the case of repayment issues or restructuring events.

Private Placement Structure

The offering is being conducted as a private placement. This means that the notes and related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. Most importantly, this limits the sale of the notes to certain qualified institutional buyers in the United States under Rule 144A of the Securities Act, as well as to non-U.S. persons in reliance on Regulation S. This is a common practice for corporate debt offerings that are targeted at institutional investors rather than the general public.

Onity Group’s Business Overview

Onity Group Inc. is a publicly traded financial services company focused on mortgage servicing and loan origination solutions. The company operates primarily through its two main business brands: PHH Mortgage and Liberty Reverse Mortgage. These business units provide a broad range of home financing products and services to individual borrowers and institutional clients.

PHH Mortgage is one of the leading non-bank mortgage servicers in the United States and offers a variety of servicing and lending programs tailored to both consumers and institutional partners. PHH Mortgage’s activities include administering and collecting payments on a large portfolio of residential mortgage loans, offering origination services, and managing escrow accounts.

Liberty Reverse Mortgage focuses on helping older homeowners access equity in their homes via reverse mortgage products, which are designed to provide cash flow relief or financial flexibility without requiring monthly mortgage payments. Reverse mortgages can be valuable tools for retirement planning and financial stability for eligible homeowners.

Onity’s operations are headquartered in West Palm Beach, Florida, but the company also maintains offices throughout the United States, as well as support centers in international markets. Since its founding in 1988, the company has grown into a major player in the non-bank mortgage servicing industry through both organic expansion and acquisitions.

Market and Financial Context

The issuance of senior notes at a fixed interest rate of 9.875% reflects current conditions in the credit markets, particularly for companies in the financial services sector. Interest rates on new debt can be influenced by factors such as the issuer’s credit profile, market volatility, broader economic conditions, and expectations about future interest rate moves by central banks. Although interest rates have varied over recent years, a near-10% coupon signals that Onity Group is accessing debt markets in a way that reflects both investor demand and the company’s strategic needs.

Investors and analysts typically evaluate such offerings not just in terms of coupon and yield but also within the context of a company’s underlying financial health. For Onity Group, successfully placing this additional tranche of senior notes may indicate confidence from qualified institutional buyers in the company’s ability to generate future cash flows and manage its debt obligations. On the other hand, debt offerings can also reflect rising capital needs or efforts to refinance existing borrowings.

Regulatory and Legal Considerations

As noted earlier, the PHH Senior Notes and the related guarantees are not registered under the Securities Act or other applicable securities laws. This means that the offering is exempt from certain disclosure and registration requirements. However, the press release emphasizes that the announcement does not constitute an offer to sell or the solicitation of an offer to buy securities in jurisdictions where such activity would be unlawful. This is standard language for private placement offerings, aimed at ensuring compliance with securities regulation in multiple jurisdictions.

Investors who participate in the offering must understand the legal structure, risks, and restrictions associated with private placements, including limitations on resale and potential liquidity constraints relative to publicly registered debt. Institutional buyers typically conduct thorough due diligence before participating in these types of transactions.

What This Means for Investors

The senior notes offering may carry different implications for existing Onity Group shareholders and potential investors:

Debt Refinancing and Financial Stability – By repaying certain existing indebtedness, Onity Group could strengthen its financial stability and potentially reduce near-term refinancing risks, which may be a positive signal to holders of other debt instruments or equity.
Impact on Credit Profile – Issuing additional secured debt may affect the company’s credit metrics, including leverage ratios and debt service obligations. Investors will watch closely how this impacts Onity’s financial performance over time.
Investor Confidence – The ability to place $150 million of notes with institutional buyers suggests a level of confidence among professional investors regarding Onity’s business prospects and creditworthiness.

Overall, the strategic placement and use of proceeds from the senior notes offering help illustrate Onity Group’s ongoing effort to manage its capital structure proactively in response to market opportunities and operational needs.

Looking Forward

With the completion of this offering, Onity Group aims to continue executing on its business objectives, while maintaining disciplined financial management. As the combined senior note series grows, stakeholders will continue to monitor the company’s earnings reports, cash flow performance, and strategic initiatives to assess the broader impact of the debt issuance on long-term goals. Investors and industry observers often look to subsequent quarterly filings and press releases for indicators of how debt strategies align with operational results.

Conclusion

In summary, Onity Group’s announcement of a $150 million offering of 9.875% Senior Notes due 2029 reflects a strategic move to support debt refinancing and corporate purposes. The offering, structured as a private placement to qualified institutional buyers and non-U.S. persons, demonstrates the company’s active engagement with capital markets and its ongoing financial planning initiatives. With its established position in the mortgage servicing industry and diversified operational footprint, Onity continues to navigate market and regulatory dynamics while pursuing growth and financial resilience.

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