UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JUNE 18, 1998
OCWEN ASSET INVESTMENT CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
VIRGINIA 000-22389 65-0736120
(STATE OR OTHER (COMMISSION (I.R.S. EMPLOYER
JURISDICTION FILE NUMBER) IDENTIFICATION NO.)
OF INCORPORATION)
THE FORUM, SUITE 1000
1675 PALM BEACH LAKES BOULEVARD, WEST PALM BEACH, FLORIDA 33401
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)
(561) 681-8000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
N/A
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
PAGE 1 OF 5
EXHIBIT INDEX ON PAGE 4
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ITEM 5. OTHER EVENTS
The news release of Ocwen Asset Investment Corp. dated June 18, 1998, announcing
recent developments is attached and filed herewith as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following exhibit is filed as part of this report:
(99) News release of Ocwen Asset Investment Corp. dated June 18,
1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
OCWEN ASSET INVESTMENT CORP.
(Registrant)
By: /s/ Mark S. Zeidman
---------------------------------------------
Mark S. Zeidman
Senior Vice President and
Chief Financial Officer
Date: June 19, 1998
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INDEX TO EXHIBIT
Exhibit No. Description Page
----------- ----------- ----
99 News release of Ocwen Asset Investment Corp. 5
dated June 18, 1998, announcing recent
developments.
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OCWEN ASSET INVESTMENT CORP. Exhibit 99
1675 PALM BEACH LAKES BOULEVARD
WEST PALM BEACH, FL 33401
(NYSE: OAC)
================================================================================
NEWS RELEASE: IMMEDIATE JUNE 18, 1998
OCWEN ASSET INVESTMENT CORP. ANNOUNCES RECENT DEVELOPMENTS
WEST PALM BEACH, FL - Ocwen Asset Investment Corp. (NYSE: OAC), a hybrid REIT
specializing in opportunistic real estate investments, announced that it entered
into the following recent transactions.
On May 18, 1998, OAC purchased for $66.0 million 23 residual interests from nine
different issuances of mortgage-related securities backed by subprime
single-family residential loans which were sponsored by the same company or its
predecessor. As of the date of original issuance, approximately $1.83 billion of
fixed-rate and adjustable-rate subprime single-family residential loans backed
the foregoing securities. As of March 1, 1998, the current collateral balance of
the loans which backed the foregoing securities was $1.14 billion, which was
$71.1 million more than the current balance of all the various classes of such
securities backed by such loans.
On June 3, 1998, OAC, through its operating partnerships, entered into an
Amended and Restated Loan Agreement with Salomon Brothers Realty Corp., as
lender, and LaSalle National Bank, as collateral agent, to fund the acquisition
and improvement of investments in real estate and the origination of commercial
real estate loans. Up to $200 million of advances may be made under the loan
agreement, which will be secured by commercial real estate and/or commercial
real estate loans. Borrowings under this agreement bear interest at a rate equal
to LIBOR plus a spread of 1.75%.
On June 9, 1998, OAC entered into an agreement to acquire for $36.0 million,
plus closing costs, the Prudential Building, a 488,080 square foot, 22 story
office building in the central business district of Jacksonville, Florida. This
agreement is subject to an environmental review of the property, and as a
result, there can be no assurance that it will be consummated in accordance with
its terms. In connection with the agreement to acquire the Prudential Building,
OAC entered into an agreement to lease the building back to the Prudential
Insurance Co. of America, which currently occupies 97% of the building, and an
agreement to sell, simultaneous with closing, two parcels of adjacent parking
areas to an adjacent hospital for approximately $4.1 million. The Prudential
lease will have a term of four years with options to vacate the premises during
the term of the lease, as well as three subsequent extension options. OAC also
entered into a letter of intent with the hospital pursuant to which it would
agree to lease 150,000 square feet in the Prudential Building for a nine-year
period upon Prudential's exercise of its termination option.
Ocwen Asset Investment Corp., a hybrid REIT headquartered in West Palm Beach,
Florida, invests in distressed commercial real estate, subordinate commercial
mortgage-backed securities and subordinate and residual residential
mortgage-backed securities. OAC generally looks for opportunities to acquire
these assets and leverage the special servicing capabilities of its manager
Ocwen Financial Corporation (NYSE: OCN), in order to realize improved yields or
wider spreads. Using a disciplined approach to real estate investing, OAC seeks
to uncover and invest in higher-yielding assets.
CERTAIN STATEMENTS CONTAINED HEREIN MAY NOT BE BASED ON HISTORICAL FACTS AND MAY
BE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF SECTION 27A OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES ACT OF
1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS MAY BE IDENTIFIED BY
REFERENCE TO A FUTURE PERIOD(S) OR BY THE USE OF FORWARD-LOOKING TERMINOLOGY
SUCH AS "MAY," AND "WILL," AND FUTURE OR CONDITIONAL VERB TENSES, SIMILAR TERMS,
VARIATIONS ON SUCH TERMS OR NEGATIVES OF SUCH TERMS. ACTUAL RESULTS COULD DIFFER
MATERIALLY FROM THOSE INDICATED IN SUCH STATEMENTS DUE TO A VARIETY OF FACTORS,
INCLUDING, BUT NOT LIMITED TO, CHANGES IN ECONOMIC ENVIRONMENTS, GOVERNMENT
FISCAL AND MONETARY POLICIES, PREVAILING INTEREST OR CURRENCY EXCHANGE RATES,
CREDIT, PREPAYMENT, BASIS AND ASSET/LIABILITY RISKS, THE FINANCIAL AND
SECURITIES MARKETS, THE AVAILABILITY OF AND COSTS ASSOCIATED WITH OBTAINING
ADEQUATE AND TIMELY SOURCES OF LIQUIDITY, GOVERNMENT REGULATIONS AFFECTING REAL
ESTATE INVESTMENT TRUSTS, LOAN SERVICING EFFECTIVENESS, THE COURSE OF
NEGOTIATIONS AND THE ABILITY TO REACH AGREEMENT WITH RESPECT TO THE MATERIAL
TERMS OF ANY PARTICULAR TRANSACTION, SATISFACTORY DUE DILIGENCE RESULTS,
SATISFACTION OR FULFILLMENT OF AGREED UPON TERMS AND CONDITIONS OF CLOSING OR
PERFORMANCE, THE TIMING OF TRANSACTION CLOSINGS, ACQUISITIONS AND THE
INTEGRATION OF ACQUIRED BUSINESSES, SIZE AND NATURE OF THE SECONDARY MARKET FOR
MORTGAGE LOANS AND THE MARKET FOR SECURITIZATIONS, OTHER FACTORS GENERALLY
UNDERSTOOD TO AFFECT THE REAL ESTATE ACQUISITION, MORTGAGE AND LEASING MARKETS,
AND OTHER RISKS DETAILED FROM TIME TO TIME IN THE COMPANY'S REPORTS AND FILINGS
WITH THE SEC, INCLUDING ITS REGISTRATION STATEMENT ON FORM S-11 AND PERIODIC
REPORTS ON FORMS 10-Q, 8-K AND 10-K.
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