WMIH Corp and Nationstar Mortgage Announce Upcoming Merger

The merger will bring together two well established US firms. Nationstar offers mortgage servicing, along with a fully integrated loan originations platform, its operations encompass both the real estate and mortgage sectors. The firm is currently the largest non-bank servicer in the US, with three customers to whom it offers a caring, transparent and seamless service. WMIH Corp is a publicly traded company with a focus on mortgage reinsurance through its subsidiary, WM Mortgage Reinsurance Inc., thus forming a natural link with Nationstar. The firm has around 600 million in cash and cash equivalents, and has large-scale shareholders, such as KKR, who own 24% in voting shares; they have agreed to support the transaction.

The newly operating business will retain the Nationstar Mortgage name and its Dallas-Fort Worth headquarters, it will be traded, at least initially, on NASDAQ under the WMIH ticker symbol. Nationstar’s senior leadership team will lead the combined company and business should continue as normal for the firm, with valued employees transitioning seamlessly into the newly combined business, according to key company contacts. The board of directors will comprise seven members, three from WMIH and four from Nationstar.

WMIH will pay up to $1.2bn to Nationstar shareholders, the estimated value of WMIH shares being $702 million. Shareholders in WMIH Corp-Nationstar can choose between receiving $18 in cash or 12.7793 of WMIH common stock for each share they own.

The deal is expected to close in the second half of 2018.

E.L