PennyMac talks $75 million fixed-to-floating preferreds at 8%-8.125%

By Stephanie N. Rotondo

Seattle, June 27 – PennyMac Mortgage Investment Trust intends to sell $75 million of series B fixed-to-floating rate cumulative redeemable preferred stock, the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 8% to 8.125%, according to a market source.

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

Dividends are payable quarterly.

The dividend will be fixed until June 15, 2024. After that date, the rate will float at Libor plus a spread.

The preferreds become redeemable on June 15, 2024 at par plus accrued dividends. However, the company can redeem prior to that date in order to maintain its real estate investment trust status or upon a change of control.

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

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

PennyMac is a Westlake Village, Calif.-based REIT.

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