Onity Group Closes $200 Million Senior Notes Offering

Proceeds to be used for general corporate purposes, including repayment of mortgage servicing rights debt

Jan. 30, 2026 at 3:55pm

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Onity Group Inc. announced that its subsidiaries, PHH Corporation and PHH Escrow Issuer LLC, closed a $200 million offering of 9.875% Senior Notes due 2029. The net proceeds will be used for general corporate purposes, including the repayment of mortgage servicing rights (MSR) indebtedness. Onity's CEO stated the offering will provide greater financial flexibility to manage leverage and invest in business growth.

Why it matters

The debt offering allows Onity to strengthen its capital structure and provides additional financial resources to support its mortgage servicing and origination businesses. As one of the largest non-bank mortgage servicers, Onity's ability to manage its debt and leverage is crucial for maintaining operations and investing in growth.

The details

The $200 million in Senior Notes were offered as an additional issuance to the $500 million in 9.875% Senior Notes due 2029 that were originally issued in November 2024. The new notes are guaranteed on a senior secured basis by Onity and certain subsidiaries. The effective yield on this new debt issuance is nearly 148 basis points lower than the original 2024 debt, providing Onity with more favorable financing terms.

  • The $200 million Senior Notes offering closed on January 30, 2026.
  • The original $500 million in 9.875% Senior Notes were issued on November 6, 2024.

The players

Onity Group Inc.

A leading non-bank financial services company providing mortgage servicing and originations solutions through its PHH Mortgage and Liberty Reverse Mortgage brands. Onity is headquartered in West Palm Beach, Florida.

PHH Corporation

A subsidiary of Onity Group that issued the $200 million in Senior Notes.

PHH Escrow Issuer LLC

A subsidiary of Onity Group that issued the $200 million in Senior Notes.

Glen A. Messina

Chair, President and CEO of Onity Group.

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What they’re saying

“We opportunistically executed this debt offering to expand and strengthen our capital structure at attractive terms. We are pleased with the strong investor demand for this offering which reflects the continued confidence in our strategy and financial results.”

— Glen A. Messina, Chair, President and CEO of Onity Group (Onity Group press release)

What’s next

Onity plans to use the net proceeds from the offering for general corporate purposes, including the repayment of mortgage servicing rights (MSR) indebtedness.

The takeaway

This debt offering allows Onity to refinance existing obligations at more favorable terms, providing the company with greater financial flexibility to manage its leverage and invest in the growth of its mortgage servicing and origination businesses. As one of the largest non-bank mortgage servicers, Onity's ability to optimize its capital structure is crucial for maintaining its operations and competitiveness in the market.