California-based multi-access lender and servicer PennyMac Financial Services The company announced on Monday that it plans to issue a private placement of senior notes with an aggregate principal amount of $650 million, which the company said will be repaid with interest in 2030.
Subject to certain unspecified exceptions, the notes will be “fully and unconditionally guaranteed on an unsecured senior basis” by the company’s existing operations.
Proceeds will be used to repay borrowings the company borrowed for its secured mortgage servicing rights (MSR) facility, other unspecified debt and “other general corporate purchases,” the company said in the offering announcement. They will only be sold to certain large investors, according to the announcement.
The announcement stated that “the offering will be made solely by means of a private placement to qualified institutional buyers” and has not been and is not expected to be “registered under the Securities Act or any state securities laws unless so registered and in the absence of the Securities Act. 》 and any applicable exemption from the registration requirements of applicable state securities laws, may not be offered or sold in the United States or to U.S. persons.
Last month, PennyMac released its financial report for the first quarter of 2024, with profits of $39 million. The company attributed the quarterly increase in production revenue to higher net proceeds from loans sold at fair value as the company expanded its direct-to-consumer pipeline in 2022.
The company also reported growth in its wholesale pipeline, the report said.
