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PHH Said Blackstone Remains Committed to the Deal

September 11, 2007

MT. LAUREL, N.J. – PHH Corporation take-private buyers Blackstone Group and GE Capital Solutions are expected to respect their commitments in the transaction, sources close to the deal said, according to the Financial Times. However, the timing of the deal’s completion is still a subject of concern. The company has not provided any guidelines regarding the closing of the transaction.

Listed New Jersey-based PHH is being bought out by GE for USD 1.8bn in cash. In conjunction with the transaction, GE has entered into an agreement to sell PHH’s mortgage operations to an affiliate of Blackstone. PHH’s mortgage business focuses on prime mortgage origination and servicing.

The first source close to the deal said there is some “squawking” between JPMorgan and Lehman Brothers over the terms of the financing, adding that the two banks are being asked to extend the bridge facility, the Financial Times said. However a second source said the way Blackstone was raising financing for its part of the deal was really the issue, without giving further explanation.

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