Should You Buy: Ocwen Financial Corp (OCN), Two Harbors Investment Corp (TWO) And Basic Energy Services, Inc (BAS)
New York, NY – GDP INSIDER – 12/29/2014.
Three companies Ocwen Financial Corp (NYSE:OCN), Two Harbors Investment Corp (NYSE:TWO) and Basic Energy Services, Inc (NYSE:BAS) witnessed recent developments. It is expected to have potential impact on its shares. While Ocwen faces class action suit, Basic Energy announced revised deal for revolving credit facilities. Two Harbors disclosed its dividend.
Ocwen Financial Corp (NYSE:OCN) has been slapped with a Class Action suit by Lifshitz & Miller. It followed after Ocwen disclosed that it was going to make $100 million payment to New York Department of Financial Services to settle improper conduct of allegations. The company also revealed that its Executive Chairman, William Erbey, would quit.
Earlier, Ocwen said that it struck a comprehensive agreement with the NYDFS in relation to its latest investigation. It was also pointed out that the company would shell out $50 million as compensation to the existing, as well as, former New York borrowers. They were facing foreclosure actions between 2009 and December 19, in the current year. The settlement also called for William Erbey to step down from the Executive Chairmanship from January 16 next year.
Two Harbors Investment Corp (NYSE:TWO) has announced a quarterly dividend of 26 cents a share for the fourth quarter. Two Harbors Investment has fixed December 30 as the record date for determining the eligible shareholders for paying dividend. The dividend is payable on January 20, whereas the stock has become ex-dividend from Friday last.
The dividend rate provides a yield of 10.3% while the five-year average dividend yield worked out to 14.40%. The current dividend represented 85% of payout ratio. For the five-year period, average dividend rate slipped by 12.87% due to the absence of continuous dividend payment. Two Investments has been paying dividend since 2009 but not continuously.
In a recent filing with the SEC, the company said that it reached a deal with Basic Energy Services, Inc (NYSE:BAS) to amend its current and restated revolving credit facility of $300 million. The agreement also involved issuance of senior notes of a maximum of $100 million subject to meeting some requirements.
Basic Energy Services said that the deal also provides cancelation of any permitted purchased notes subject to conditions and the resultant impact on consolidated interest coverage ratio, etc.
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