PennyMac offers $75 million fixed-to-floating cumulative preferreds; price talk around 8.125%

By Stephanie N. Rotondo

Seattle, March 2 – PennyMac Mortgage Investment Trust is offering $75 million of series A fixed-to-floating rate cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Thursday.

Price talk is in the 8.125% area, according to a market source.

Morgan Stanley & Co. LLC, Keefe Bruyette & Woods Inc. and RBC Capital Markets are the joint bookrunners.

The dividend will be fixed through March 15, 2024, at which point it will begin floating at Libor plus a spread.

The company can call the preferred on or after March 15, 2024, or upon a change of control, at par plus accrued dividends.

The new securities will be listed on the New York Stock Exchange under the ticker symbol “PMTPrA.”

Proceeds will be used to fund business and investment activities, to repay debt, to repurchase common stock under a repurchase program and for other general corporate purposes.

PennyMac is a Westlake Village, Calif.-based real estate investment trust.

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