M&A - ONITY GROUP INC.

Form Type: S-3/A

Filing Date: 2025-06-02

Corporate Action: Acquisition

Type: Update

Accession Number: 000164117225013259

Filing Summary: Onity Group Inc. filed an Amendment No. 1 to Form S-3 registration statement to register the resale of 2,111,787 shares of Series B Perpetual Preferred Stock, which were issued as consideration for the acquisition of all assets of Mortgage Assets Management, LLC. The Series B Preferred Stock ranks senior to common stock regarding dividends and distribution rights upon liquidation. Holders are entitled to cumulative cash dividends at a rate of 7.875% per annum of the $25.00 liquidation preference per share until November 1, 2029, after which it will increase by 2.5% annually, capping at 15.0%. The shares can be redeemed at the company's option on or after September 15, 2028, for cash at the liquidation preference plus accumulated dividends. The preferred stock is not currently listed on any exchange, and there is currently no established market for it. Investing in this stock involves risk, including limited voting rights and potential lack of liquidity for shareholders.