ACTION: Ocwen Financial Corporation (“OCN”) has announced a distribution of Altisource Portfolio Solutions S.A. (“ASPS”) Common Shares. The distribution ratio is .3333 ASPS Common Shares per OCN Common Share. The record date is August 4, 2009; the mail date is August 10, 2009. The New York Stock Exchange (“NYSE”) tentatively has set August 10, 2009 as the ex-distribution of the distribution.
The NYSE has determined due-bills for the ASPS distribution must accompany each OCN Share delivered after August 4, 2009 in settlement of OCN transactions made prior to the ex-date. Altisource Portfolio Solutions S.A. is expected to begin trading “when issued” on the NASDAQ Global Select Market under the symbol “ASPSV” on August 6, 2009.
This action will be coordinated with the Options Clearing Corporation.
CATEGORY: Stock Distribution
EQUITY SYMBOL: 100 Ocwen Financial Corporation (“OCN”)
ONE CHICAGO SYMBOL: OCN1C will change to OCN
CME FUTURES SYMBOL: OCN for the re-listed OCN1C; OC9 for the OCN2C
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Monday, August 10, 2009
NEW DELIVERABLE PER CONTRACT: For the OCN2C:
1) 100 Ocwen Financial Corporation (“OCN”) Common Shares
2) 33 Altisource Portfolio Solutions S.A. (“ASPS”) Common Shares
*3) Cash in lieu of .33 fractional ASPS shares
*The cash portion of the deliverable remains fixed.
For the re-listed OCN1C:
100 Ocwen Financial Corporation (“OCN”) Common Shares
APPLICABLE CONTRACT MONTHS: August, September, October, December 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the OCN2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
OCN2C = OCN + .33 (ASPS) + cash in lieu of .33 fractional ASPS Shares
Please note that the valuation would apply only to the OCN2C deliverable in terms of current market value of the deliverable securities. The resulting price would not be equivalent to the daily settlement price of a futures contract month, whose determination would include cost of money carrying charges, adjustment for dividends, and other factors.
NOTES: The forecasted effect of the upcoming corporate event on each clearing firms’ positions can be viewed in infopac in the Corporate Event Initial Forecast Report (ONE712), the Corporate Event Final Forecast Report (ONE713), and the Corporate Event Forecast Audit Report (CPDBU710).
If you have any questions regarding the information provided in the document, please call CME Clearing risk management hotline at (312) 648-3888.