PHH Corp. a Mount Laurel-based mortgage and auto-leasing company, said today that lenders agreed to new terms on its debt, reducing the capacity of a series of notes from $3.9 billion to $3.5 billion.

The agreement with Chesapeake Funding L.L.C. "will provide us with greater overall flexibility in financing the purchase of vehicles in connection with our fleet management services segment," the company said in a statement.

PHH's largest shareholder, Pennant Capital Management L.L.C., said Nov. 28 that the company was in "peril," and needed to try to become profitable immediately rather than focus on the long term.

Shares were up 47 cents to $8.53 in morning trading.