PHH Corporation Announces the Closing of $1.0 Billion of TALF-Eligible Asset Backed Notes Issued by Chesapeake Funding LLC

MT. LAUREL, N.J.--PHH Corporation (“PHH” or the “Company”) today announced the successful closing by its indirect wholly-owned subsidiary, Chesapeake Funding LLC (“Chesapeake”), of the issuance and sale of $1.0 billion in aggregate principal amount of its Series 2009-1 Floating Rate Asset Backed Notes (“Series 2009-1 Notes”). The Series 2009-1 Notes were rated AAA/Aaa by Standard & Poor’s Rating Services and Moody’s Investor Services respectively and qualified as “eligible collateral” under and as defined in the Term Asset-Backed Securities Loan Facility, or “TALF,” established by the Federal Reserve Bank of New York.

The net proceeds from the issuance and sale of the notes will be used to repay a portion of Chesapeake’s Series 2006-1 Floating Rate Asset Backed Variable Funding Investor Notes, with the remaining proceeds expected to be used to fund the acquisition of vehicles to be leased to customers of PHH Vehicle Management Services, LLC (“PHH Arval”), the Company’s fleet management business. Commenting on the successful closing of the Chesapeake transaction, George J. Kilroy, President and Chief Executive Officer of PHH Arval, stated: “PHH is committed to providing a lease product to our fleet management clients that is consistent with our outstanding client service and award winning technology and innovation. Our ability to close the first TALF eligible securities issuance backed by commercial fleet lease assets in the market demonstrates PHH Arval’s commitment to being a leading provider of financing solutions in the commercial fleet industry.”