Pennymac Financial Services, Inc. has announced a proposed private offering of $650 million of senior notes. The notes, which are due in 2033, will be fully and unconditionally guaranteed on an unsecured senior basis by the company's existing and future wholly owned domestic subsidiaries, other than certain excluded subsidiaries. The proceeds from the offering will be used for the repayment of certain indebtedness, including the repayment of borrowings under secured MSR facilities and other secured indebtedness, as well as for the repurchase or repayment of a portion of the company's 5.375% senior notes due October 2025, and for other general corporate purposes.
As of December 31, 2024, Pennymac Financial serviced loans totaling $666 billion in unpaid principal balance, establishing itself as a top mortgage servicer in the nation. In 2024, the company's production of newly originated loans totaled $116 billion in unpaid principal balance, further solidifying its position as a top lender in the nation.
The offering is subject to market conditions and other factors and will be made solely by means of a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to certain non-U.S. persons pursuant to Regulation S under the Securities Act. The notes have not been and are not expected to be registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons absent an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. Following these announcements, the company's shares moved 3.2%, and are now trading at a price of $104.85. If you want to know more, read the company's complete 8-K report here.
