By Stephanie N. Rotondo
Seattle, June 27 – PennyMac Mortgage Investment Trust sold $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferred stock, a market source reported on Tuesday.
The deal came at the rich end of price talk that had been set at 8% to 8.125%. The amount was increased from $75 million.
Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets are the joint bookrunners.
There is a $26.25 million over-allotment option.
Dividends are payable quarterly.
The dividend will be fixed until June 15, 2024. After that date, the rate will float at Libor plus 599 basis points.
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 company’s 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.
| Issuer: | PennyMac Mortgage Investment Trust
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| Securities: | Series B fixed-to-floating rate cumulative redeemable preferred stock
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| Amount: | $175 million, or 7 million shares
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| Greenshoe: | $26.25 million, or 1.05 million shares
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| Maturity: | Perpetual
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| Dividend: | Fixed at 8% until June 15, 2024, then floating at Libor plus 599 bps
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| Price: | Par of $25
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| Call options: | On or after June 15, 2024 at par plus accrued dividends; prior to June 15, 2024 to maintain its REIT status or upon a change of control
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| Pricing date: | June 27
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| Settlement date: | July 5
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| Bookrunners: | Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and RBC Capital Markets
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| Expected listing: | NYSE: PMTPrB
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| Talk: | 8% to 8.125%
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