PennyMac to Raise $200M with Senior Notes Offering

By Bobby Samwell • Tuesday, May 21 11:18 • Permanent Link

Pennymac Mortgage Investment Trust (NYSE: PMT) has announced its plans for a private offering of exchangeable senior notes due 2029, aiming to raise $200 million with a 13-day option for an additional $30 million. The notes, to be offered only to qualified institutional buyers, will be fully guaranteed by PMT.

The net proceeds from the offering are intended to be used for various purposes, including the acquisition of mortgage servicing rights, government-sponsored enterprise credit risk transfer securities, and other mortgage-related securities. Additionally, the funds may go towards funding PMT’s correspondent lending business, repayment of other indebtedness, and for general business purposes.

Notably, neither the notes nor the common shares issuable upon exchange of the notes will be registered under the securities act. This private offering is issued pursuant to rule 135c under the securities act.

Pennymac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that primarily invests in residential mortgage loans and mortgage-related assets, and is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of Pennymac Financial Services, Inc. (NYSE: PFSI). Today the company's shares have moved -6.8% to a price of $13.93. For the full picture, make sure to review PennyMac Mortgage Investment Trust's 8-K report.

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