Rocket Companies Plans $1.2B Debt Raise

By Chris Stiles • Tuesday, June 09 12:18 • Permanent Link

Rocket Companies said it plans to raise $1.2 billion through a pair of senior note offerings: $600 million due 2031 and another $600 million due 2034.

The company said the notes will be guaranteed on a senior unsecured basis by its direct and indirect domestic subsidiaries that already back its existing senior notes. Rocket intends to use the proceeds to repay Rocket Mortgage’s 2.875% senior notes due 2026 and to pay down other debt at the company and its subsidiaries.

The new borrowing comes as Rocket moves to replace near-term debt with longer-dated maturities. The company did not disclose pricing for either note issue. As a result of these announcements, the company's shares have moved 6.36% on the market, and are now trading at a price of $13.135. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.