PennyMac’s $115 million of 8.125% preferreds admitted to NYSE trading

By Stephanie N. Rotondo

Seattle, March 13 – PennyMac Mortgage Investment Trust’s $115 million offering of 8.125% series A fixed-to-floating rate cumulative redeemable preferred stock began trading on the New York Stock Exchange on Monday, according to a market source.

The ticker symbol is “PMTPrA.”

The deal priced on March 2. 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 583.1 basis points.

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

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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