Chicago, March 2 – PennyMac Corp. sold an upsized offering of $300 million of five-year notes exchangeable for PennyMac Mortgage Investment Trust stock with a 5.5% coupon and an initial exchange premium of approximately 15%, according to a press release late Tuesday.
The notes were initially expected to be sized at $200 million and were launched with price talk for a coupon of 5.25% to 5.75% and an initial exchange premium of 12.5% to 17.5%, according to a market source.
Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are joint bookrunners for the Rule 144A offering, which carries an upsized $45 million greenshoe, from $30 million.
The notes are non-callable.
There is takeover protection and dividend protection above a quarterly dividend of 47 cents.
The notes will be settled in cash, shares or a combination of both.
Proceeds will be used for general corporate purposes, which may include the repayment of debt and the investment in mortgage servicing rights.
PennyMac is a Westlake Village, Calif.-based mortgage real estate investment trust.
Abigail W. Adams contributed to this article.
| Issuer: | PennyMac Corp.
|
| Guarantor: | PennyMac Mortgage Investment Trust
|
| Issue: | Exchangeable senior notes
|
| Amount: | $300 million, upsized
|
| Greenshoe: | $45 million, upsized
|
| Maturity: | March 15, 2026
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Exchange premium: | 15%
|
| Exchange price: | $21.69
|
| Exchange ratio: | 46.1063
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | Coupon of 5.25% to 5.75% and an initial exchange premium of 12.5% to 17.5%
|
| Pricing date: | March 2
|
| Settlement date: | March 5
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: PMT
|
| Stock price: | $18.86 at close March 2
|
| Market capitalization: | $1.85 billion
|
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