New York, March 2 – PennyMac Mortgage Investment Trust priced an upsized $115 million offering of series A fixed-to-floating rate cumulative redeemable preferred stock with an 8.125% dividend after the close on Thursday, according to a news release.
The amount was increased from $75 million and the dividend matched price talk that had been set in the 8.125% area.
There is a greenshoe for an additional $17.25 million.
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 of 583.1 basis points.
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.
| Issuer: | PennyMac Mortgage Investment Trust
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| Issue: | Series A fixed-to-floating rate cumulative redeemable preferred stock
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| Amount: | $115 million, or 4.6 million shares
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| Greenshoe: | $17.25 million, or 690,000 shares
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| Dividend: | 8.125%, steps up to Libor plus 583.1 bps on March 15, 2024
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| Price: | Par of $25.00
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| Call: | From March 15, 2024 at par
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| Bookrunners: | Morgan Stanley & Co. LLC, Keefe Bruyette & Woods Inc. and RBC Capital Markets
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| Pricing date: | March 2
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| Settlement date: | March 9
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| Listing: | NYSE: PMTPrA (expected)
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| Distribution: | Off shelf
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