Provident Funding Associates, L.P. and PFG Finance Corp. Announce Tender Offer for 6.75% Senior Notes due 2021 and Solicitation of Consents for Proposed Amendments to the Related Indenture

NEW YORK, May 24, 2017 /PRNewswire/ -- Provident Funding Associates, L.P. (the "Company") and PFG Finance Corp. (the "Co-Issuer" and, together with the Company, the "Issuers") announced today that they commenced a tender offer to purchase for cash (the "Tender Offer") any and all of the $452,391,000 aggregate principal amount outstanding of their 6.75% Senior Notes due 2021 (the "Notes") and a solicitation of consents (the "Consent Solicitation") for proposed amendments to the related indenture. The Tender Offer and the Consent Solicitation are being made pursuant to an Offer to Purchase and Consent Solicitation Statement dated as of May 24, 2017 (the "Offer to Purchase and Consent Solicitation Statement"), and related consent and letter of transmittal. The Tender Offer will expire at 12:00 midnight, New York City time, on June 21, 2017.

Holders of Notes that are validly tendered prior to the consent payment deadline of 5:00 p.m., New York City time, on June 7, 2017 and accepted for purchase will receive total consideration of $1,037.50 per $1,000 principal amount of Notes validly tendered and accepted for purchase, which includes a consent payment of $30 per $1,000 principal amount of Notes, plus any accrued and unpaid interest up to, but not including, the initial settlement date, which is expected to be June 8, 2017.

Pursuant to the Consent Solicitation, the Issuers are soliciting from holders of the Notes consents to amendments to the indenture governing the Notes that would eliminate most of the covenants, certain events of default applicable to the Notes and amend certain other provisions contained in such indenture and the Notes (the "Proposed Amendments"). Adoption of the Proposed Amendments requires the consent of the holders of at least a majority of the outstanding principal amount of the Notes. A holder may not revoke a consent without withdrawing the previously tendered Notes to which such consent relates. Notes tendered may only be withdrawn, and related consents revoked, prior to 5:00 p.m., New York City time, on June 7, 2017, unless extended, except in limited circumstances where additional withdrawal rights are required by law.

Holders of Notes that are validly tendered after the consent payment deadline, but prior to the expiration of the Tender Offer, and accepted for purchase will receive the tender offer consideration of $1,007.50 per $1,000 principal amount of Notes, plus any accrued and unpaid interest up to, but not including, the final settlement date, which is expected to be June 22, 2017. Holders of Notes tendered after the consent payment deadline and accepted for purchase will not receive a consent payment. Consummation of the Tender Offer and the Consent Solicitation are subject to the satisfaction or waiver of the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, including the financing condition and the supplemental indenture condition described therein. The Issuers may amend, extend or terminate the Tender Offer and the Consent Solicitation in their sole discretion.

This news release is neither an offer to purchase nor a solicitation of an offer to sell any Notes. The Tender Offer and the Consent Solicitation are being made only pursuant to the Offer to Purchase and Consent Solicitation Statement and related consent and letter of transmittal, copies of which will be delivered to holders of the Notes. Persons with questions regarding the Tender Offer and the Consent Solicitation should contact the dealer manager, Merrill Lynch, Pierce, Fenner & Smith Incorporated, at (888) 292-0070 (toll free) or (980) 387-5602 (collect) or the information agent, D.F. King & Co., Inc., at (212) 269-5550 (banks and brokers) or (800) 628-8532 (toll-free).

The Company is a leading private, independent mortgage company that originates and services residential mortgage loans.  For the year ended December 31, 2016, the Company was the fourth largest wholesale mortgage originator and the twenty-third largest direct mortgage originator in the United States, with $11.3 billion in mortgage loan origination volume funded directly to borrowers.  For the year ended December 31, 2016, the Company's originations totaled $12.0 billion, including loans originated through its correspondent channel.

The Co-Issuer is a wholly-owned special purpose finance subsidiary of the Company that conducts no business activities other than serving as an issuer of the Notes and other comparable financing activities.

Some of the statements in this release may constitute forward-looking statements. Such statements are based on our current expectations and could be affected by numerous factors and are subject to various risks and uncertainties. Do not rely on any forward-looking statement, as we cannot predict or control many of the factors that ultimately may affect our ability to achieve the results estimated. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

Contact:

Provident Funding Associates, L.P.
851 Traeger Avenue
San Bruno, California 94066
(650) 652‑1300

Investors:
Tim Maimone, (650) 652-1300
[email protected]

SOURCE Provident Funding Associates, L.P.