Atlanta mortgage-servicing firm Ocwen Financial Corp. said Monday that it bought $72.3 million of its own shares from W.L. Ross, a private equity firm owned by Atlanta-based money manager Invesco.
W.L. Ross has owned a stake in Ocwen since last year, when it sold mortgage business Homeward Residential Holdings to the firm for $766 million, including 162,000 preferred shares then valued at $162 million.
After that earlier deal, W.L. Ross’ billionaire founder, Wilbur Ross, joined Ocwen’s board of directors.
Under Monday’s deal, 62,000 of W.L. Ross’ preferred shares in Ocwen were converted to common stock in the company, which Ocwen then bought and retired.
Ocwen CEO Bill Erbey said the move mirrored earlier purchases of company stock and allowed it to reduce future dividend payments.
Ross said the stock sale provides cash to pay out to investors in W.L. Ross’ maturing funds and “does not reflect a change in our enthusiasm for Ocwen and its management, or my continuing role on” Ocwen’s board.
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