In a press release, H&R Block (HRB) announced it is selling it Option One Mortgage Servicing Business to Wilbur Ross for $1.1 billion.
In the release, HRB said “based on the balance sheet as it existed on January 31, 2008, the Buyer would have assumed approximately $1.07 billion in servicing advances made by OOMC on behalf of mortgage security holders at a formula price of $0.97 per $1.00 of outstanding servicing advances. Thus, at January 31 the Buyer would have paid approximately $1.04 billion to acquire such advances, less a retained receivable. However, the Company expects the amount of outstanding servicing advances to grow during the period between January 31 and closing, and the actual price to be paid by the Buyer for the assumption of servicing advances will be based on the formula price.”
This is Ross’s second billion dollar foray into the currently troubled financial sector in as many weeks. Last week he disclosed a billion dollar investment in municipal bond insurer Assured Guarantee (AGO).
Disclosure (“none” means no position):None
