Tampa, Fla.-based Walter Industries Inc. has announced several critical steps toward the planned separation of the company's financing and homebuilding businesses from its core natural resources and Sloss businesses.
The company has recently amended its 2005 Walter Credit Agreement, increasing the revolver from $225 million to $475 million. Approximately $220 million of available revolver funds were used to repay and terminate the Mid-State Trust IX and Trust XIV mortgage warehouse facilities, which were due to mature in July and October, respectively.
With the warehouse facilities now repaid and terminated, the firm says it has unencumbered mortgage assets exceeding $330 million and is no longer reliant on the availability of mortgage warehouses or asset-backed securitization markets.
In addition, Walter Mortgage Co. will no longer provide customers of Jim Walter Homes with mortgage financing. However, the backlog of homes with signed contracts and those under construction, which will be completed over the next six to nine months, will be financed by Walter Mortgage.
Walter Industries adds that Jim Walter Homes is transitioning to a third-party financing model – including the use of government-sponsored loan programs. Walter Mortgage will continue to service its existing $1.8 billion portfolio and pursue other servicing opportunities.
Source: Walter Industries Inc.