PHH Corporation (NYSE:PHH) (“PHH” or the “Company”) today announced the
successful closing by its indirect wholly-owned subsidiary, Chesapeake
Funding LLC (“Chesapeake”), of the issuance and sale of $1.0 billion in
aggregate principal amount of its Series 2009-1 Floating Rate Asset
Backed Notes (“Series 2009-1 Notes”). The Series 2009-1 Notes were rated
AAA/Aaa by Standard & Poor’s Rating Services and Moody’s Investor
Services respectively and qualified as “eligible collateral” under and
as defined in the Term Asset-Backed Securities Loan Facility, or “TALF,”
established by the Federal Reserve Bank of New York.
The net proceeds from the issuance and sale of the notes will be used to
repay a portion of Chesapeake’s Series 2006-1 Floating Rate Asset Backed
Variable Funding Investor Notes, with the remaining proceeds expected to
be used to fund the acquisition of vehicles to be leased to customers of
PHH Vehicle Management Services, LLC (“PHH Arval”), the Company’s fleet
management business. Commenting on the successful closing of the
Chesapeake transaction, George J. Kilroy, President and Chief Executive
Officer of PHH Arval, stated: “PHH is committed to providing a lease
product to our fleet management clients that is consistent with our
outstanding client service and award winning technology and innovation.
Our ability to close the first TALF eligible securities issuance backed
by commercial fleet lease assets in the market demonstrates PHH Arval’s
commitment to being a leading provider of financing solutions in the
commercial fleet industry.”
The Series 2009-1 Notes have not been and will not be registered under
the Securities Act of 1933, as amended (the “Securities Act”), or any
applicable state securities laws, and may not be offered or sold in the
United States without registration under the Securities Act or pursuant
to an applicable exemption from such registration. The Series 2009-1
Notes were sold to qualified institutional buyers in reliance on
Rule 144A under the Securities Act. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy the
Series 2009-1 Notes, nor shall it constitute an offer, solicitation or
sale of the Series 2009-1 Notes in any state in which such offer,
solicitation or sale would be unlawful.
About PHH Corporation
Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading
outsource provider of mortgage and vehicle fleet management services.
