June 09, 2009

PHH Corporation Closes $1 Billion in TALF Funding

ARTICLE TOOLS        | E-MailPrint Subscribe

Send an e-mail to colleagues Please fill out the form below to send a link to this story to your colleagues.
Your Name:	Your E-mail:
Colleagues' E-mail (Separate each address with comma):
Message: (Max. 500 chars.)
Enter the verification code as it is shown below without spaces. (Not case-sensitive) Enter Code: What's this? Image Code Verification Automated programs can't "read" the code you see in the box: only humans can. When you enter this code, it ensures that your order is going to a real person. If you don't see an image, make sure your browser is set to display images and try again. If you're not sure what the code is, make your best guess. If you're incorrect, you'll get another chance to enter a different code on the next screen. Close
CANCEL

MT. LAUREL, NJ – PHH Corporation announced today the successful closing of $1.0 billion of funding through Chesapeake Funding LLC. The asset-backed notes were rated AAA/Aaa by Standard & Poors Rating services and Moody's Inventory Services respectively.

According to PHH, the notes qualified as "eligible collateral" under the Term Asset-Based Securities Loan Facility (TALF) program, which enables certain qualified investors to fund a substantial portion of their investment in TALF-eligible securities with loans from 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.

George J. Kilroy, PHH Arval president and CEO, told Automotive Fleet: "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."

In addition to this successful offering, other portions of the company's funding strategy are still moving forward, including consideration of the purchase of a chartered depository institution as an important strategic focus for both fleet and mortgage, according to a company spokesperson.

PHH Arval also said this funding news, "combined with PHH's ongoing commitment to customer service, investment in technology, innovative new product offerings, and prestigious marketplace awards, provides positive momentum for PHH and its clients going into the second half of the year."

[ Request more info about this product/service/company ]

Request More Info Fill out the form below to request more info regarding the company/product/service featured in the story.
* Name:	Company:
* E-mail:	Phone:
Preferred contact method: EmailPhone
I would like info on the following:
Enter the verification code as it is shown below without spaces. (Not case-sensitive) Enter Code: What's this? Image Code Verification Automated programs can't "read" the code you see in the box: only humans can. When you enter this code, it ensures that your order is going to a real person. If you don't see an image, make sure your browser is set to display images and try again. If you're not sure what the code is, make your best guess. If you're incorrect, you'll get another chance to enter a different code on the next screen. Close
CANCEL