PennyMac Financial Services, Inc. Announces Pricing of Private Offering of $650 Million of Senior Notes
20 Mayo 2024 - 4:10PM
Business Wire
PennyMac Financial Services, Inc. (NYSE: PFSI) and its
subsidiaries (the “Company”) today announced the pricing of its
previously announced offering of $650 million aggregate principal
amount of 7.125% Senior Notes due 2030 (the “Notes”). The Notes
will bear interest at 7.125% per annum and will mature on November
15, 2030. Interest on the Notes will be payable semi-annually on
May 15 and November 15 of each year, beginning on November 15,
2024. The Notes 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. Proceeds from the offering will be used to repay
borrowings under our secured MSR facilities, other secured
indebtedness, and for other general corporate purposes. The
offering is expected to close on May 23, 2024, subject to customary
closing conditions.
The offering was made solely by means of a private placement to
qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), 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.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale of any security in any
jurisdiction in which such offering, solicitation or sale would be
unlawful.
About PennyMac Financial Services, Inc.
PennyMac Financial Services, Inc. is a specialty financial
services firm focused on the production and servicing of U.S.
mortgage loans and the management of investments related to the
U.S. mortgage market. Founded in 2008, the company is recognized as
a leader in the U.S. residential mortgage industry and employs over
3,800 people across the country. For the twelve months ended March
31, 2024, PennyMac Financial’s production of newly originated loans
totaled $98 billion in unpaid principal balance, making it the
second largest mortgage lender in the nation. As of March 31, 2024,
PennyMac Financial serviced loans totaling $617 billion in unpaid
principal balance, making it a top five mortgage servicer in the
nation.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended, regarding management’s beliefs, estimates, projections
and assumptions with respect to, among other things, the expected
timing for the closing of the offering of Notes and the use of
proceeds therefrom. Words like “believe,” “expect,” “anticipate,”
“promise,” “project,” “plan,” and other expressions or words of
similar meanings, as well as future or conditional verbs such as
“will,” “would,” “should,” “could,” or “may” are generally intended
to identify forward-looking statements.
Actual results and operations for any future period may vary
materially from those projected herein and from past results
discussed herein. Factors which could cause actual results to
differ materially from historical results or those anticipated
include, but are not limited to: interest rate changes; changes in
macroeconomic and U.S. real estate market conditions; the
continually changing federal, state and local laws and regulations
applicable to the highly regulated industry in which the Company
operates; lawsuits or governmental actions if the Company does not
comply with the laws and regulations applicable to the Company’s
business; the mortgage lending and servicing-related regulations
promulgated by the Consumer Financial Protection Bureau and its
enforcement of these regulations; the Company’s dependence on U.S.
government-sponsored entities and changes in their current roles or
their guarantees or guidelines; changes to government mortgage
modification programs; changes in real estate values, housing
prices and housing sales; changes to government mortgage
modification programs; foreclosure delays and changes in
foreclosure practices; the licensing and operational requirements
of states and other jurisdictions applicable to the Company’s
businesses, to which the Company’s bank competitors are not
subject; the Company’s ability to manage third-party service
providers and vendors and their compliance with laws, regulations
and investor requirements; the Company’s exposure to risks of loss
resulting from severe weather events, man-made or other natural
conditions, the effect of climate change, and pandemics;
difficulties inherent in adjusting the size of the Company’s
operations to reflect changes in business levels; maintaining
sufficient capital and liquidity and compliance with financial
covenants; the Company’s substantial amount of indebtedness;
increases in the number of loan delinquencies and defaults; failure
to modify, resell or refinance early buyout loans or defaults of
early buyout loans beyond the Company’s expectations; the Company’s
reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a
significant contributor to its mortgage banking business; the
Company’s obligation to indemnify third-party purchasers or
repurchase loans if loans that it originates, acquires, services or
assists in the fulfillment of, fail to meet certain criteria or
characteristics or under other circumstances; the Company’s
exposure to counterparties that are unwilling or unable to honor
contractual obligations, including their obligation to indemnify
the Company or repurchase defective mortgage loans; the Company’s
ability to realize the anticipated benefit of potential future
acquisitions of mortgage servicing rights; the Company’s obligation
to indemnify PMT if the Company’s services fail to meet certain
criteria or characteristics or under other circumstances; decreases
in the returns on the assets that the Company selects and manages
for PMT, and the Company’s resulting management and incentive fees;
the extensive amount of regulation applicable to the Company’s
investment management segment; conflicts of interest in allocating
the Company’s services and investment opportunities among the
Company and PMT; the effect of public opinion on the Company’s
reputation; the Company’s ability to effectively identify, manage
and hedge its credit, interest rate, prepayment, liquidity and
climate risks; the Company’s initiation of new business activities
or expansion of existing business activities; the Company’s ability
to detect misconduct and fraud; the Company’s ability to
effectively deploy new information technology applications and
infrastructure; the Company’s ability to mitigate cybersecurity
risks and cyber incidents; the Company’s ability to pay dividends
to its stockholders; the Company’s use of the proceeds from the
offering of Notes; and the Company’s organizational structure and
certain requirements in its charter documents. You should not place
undue reliance on any forward-looking statement and should consider
all of the uncertainties and risks described above, as well as
those more fully discussed in reports and other documents filed by
the Company with the Securities and Exchange Commission from time
to time. The Company undertakes no obligation to publicly update or
revise any forward-looking statements or any other information
contained herein, and the statements made in this press release are
current as of the date of this release only.
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version on businesswire.com: https://www.businesswire.com/news/home/20240520240528/en/
Media Lauren Padilla mediarelations@pennymac.com
805.225.8224
Investors Kevin Chamberlain Isaac Garden
PFSI_IR@pennymac.com 818.224.7028
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