SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 7)
Under the Securities Exchange Act of 1934*
PHH Corporation
---------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $0.01 per share
---------------------------------------------------------------------
(Title of Class of Securities)
693320202
---------------------------------------------------------------------
(CUSIP Number of Class of Securities)
Alan Fournier
Pennant Capital Management LLC
26 Main Street, Suite 203
Chatham, NJ 07928
(973) 701-1100
---------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Michael A. Schwartz, Esq.
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, NY 10019-6099
(212) 728-8000
October 6, 2008
---------------------------------------------------------------------
(Date of Event which Requires
Filing of this Schedule)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box: [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).
SCHEDULE 13D
--------------------------------- -----------------
CUSIP No. 693320202 Page 2 of 8 Pages
--------------------------------- -----------------
----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Pennant Capital Management LLC
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,407,141
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,141
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,407,141
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.97%*
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
----------- --------------------------------------------------------------------
* Calculated based on 54,256,294 shares of common stock outstanding as
of July 16, 2008, as reported in the Issuer's Form 10-Q for the
quarterly period ended June 30, 2008.
SCHEDULE 13D
--------------------------------- -----------------
CUSIP No. 693320202 Page 3 of 8 Pages
--------------------------------- -----------------
----------- --------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Alan Fournier
----------- --------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
----------- --------------------------------------------------------------------
3 SEC USE ONLY
----------- --------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
----------- --------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
----------- --------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------- --------- ------------------------------------------------
7 SOLE VOTING POWER
0
--------- ------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,407,141
OWNED BY --------- ------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- ------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,407,141
----------- --------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,407,141
----------- --------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
----------- --------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.97%*
----------- --------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
----------- --------------------------------------------------------------------
* Calculated based on 54,256,294 shares of common stock outstanding as
of July 16, 2008, as reported in the Issuer's Form 10-Q for the
quarterly period ended June 30, 2008.
This Amendment No. 7 to Schedule 13D is filed on behalf of Pennant Capital
Management, LLC, a Delaware limited liability company ("Pennant Capital"), and
Alan Fournier, a United States citizen ("Mr. Fournier," and together with
Pennant Capital, the "Reporting Persons"), and further amends the Schedule 13D
originally filed on March 22, 2007, as amended by Amendment No. 1 thereto filed
on April 30, 2007, Amendment No. 2 thereto filed on June 20, 2007, Amendment No.
3 thereto filed on August 3, 2007, Amendment No. 4 thereto filed on August 10,
2007, Amendment No. 5 thereto filed on August 15, 2008 and Amendment No. 6
thereto filed on September 17, 2008 (all as amended by this Amendment No. 7, the
"Schedule 13D") with respect to the shares of common stock, par value $0.01 per
share (the "Common Stock"), of PHH Corporation, a Maryland corporation (the
"Issuer"). Capitalized terms used and not otherwise defined herein have the
meanings ascribed thereto in the Schedule 13D.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect
to Securities of the Issuer.
The last paragraph of Item 6 of the Schedule 13D is hereby amended and
restated as follows:
The Funds have entered into certain additional standardized, cash-settled
swap agreements with Morgan Stanley Capital Services, Inc., as the counterparty,
for which the Common Stock is the reference security. Annex II hereto sets forth
the date of each such swap agreement, the number of notional shares of Common
Stock covered by each of the agreements, the reference price for the Common
Stock covered by each agreement and the termination date of each agreement.
Under each swap agreement, the Funds have taken the "long" side of the swap and
therefore are entitled to the economic benefits, and are subject to the economic
risks, of owning the Common Stock, but have no rights or powers with respect to
any shares of Common Stock as a result of the agreement. Neither Pennant
Capital, Mr. Fournier nor any of the Funds is the beneficial owner of any shares
of Common Stock as a result of the swap agreements described above, and,
accordingly, the number of shares of Common Stock stated as beneficially owned
by the Reporting Persons in this Schedule 13D does not include any ownership as
a result of such swap agreements. The swap agreements terminate on the dates set
forth in Annex II hereto or upon the written notice of either party.
[Signatures on following page]
- 4 -
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: October 9, 2008
PENNANT CAPITAL MANAGEMENT LLC
By: /s/ Alan Fournier
-------------------------------
Alan Fournier, Managing Member
By: /s/ Alan Fournier
-------------------------------
Alan Fournier
[SIGNATURE PAGE TO AMENDMENT NO. 7 TO SCHEDULE 13D
WITH RESPECT TO PHH CORPORATION]
Annex II
--------
(Swap Agreements Covering Securities of the Issuer)
----------------- ----------------- --------------------- ----------------------
Date Shares Reference Price Termination Date
----------------- ----------------- --------------------- ----------------------
8/29/2008 250,000 15.30 9/2/2010
----------------- ----------------- --------------------- ----------------------
9/2/2008 113,600 15.86 9/4/2010
----------------- ----------------- --------------------- ----------------------
9/3/2008 50,900 15.95 9/7/2010
----------------- ----------------- --------------------- ----------------------
9/4/2008 85,500 15.49 9/8/2010
----------------- ----------------- --------------------- ----------------------
9/15/2008 100,000 14.01 9/14/2010
----------------- ----------------- --------------------- ----------------------
9/16/2008 50,000 13.77 9/15/2010
----------------- ----------------- --------------------- ----------------------
9/17/2008 50,000 13.46 9/22/2010
----------------- ----------------- --------------------- ----------------------
9/18/2008 5,000 12.97 9/23/2010
----------------- ----------------- --------------------- ----------------------
9/29/2008 100,000 12.73 10/4/2010
----------------- ----------------- --------------------- ----------------------
9/30/2008 19,400 12.23 10/5/2010
----------------- ----------------- --------------------- ----------------------
10/1/2008 50,000 11.75 10/6/2010
----------------- ----------------- --------------------- ----------------------
10/2/2008 50,000 9.25 10/7/2010
----------------- ----------------- --------------------- ----------------------
10/3/2008 80,600 8.99 10/8/2010
----------------- ----------------- --------------------- ----------------------
10/6/2008 219,700 8.25 10/11/2010
----------------- ----------------- --------------------- ----------------------
10/7/2008 50,000 8.74 10/12/2010
----------------- ----------------- --------------------- ----------------------
10/8/2008 200,000 8.27 10/13/2010
----------------- ----------------- --------------------- ----------------------