PennyMac’s $175 million of 8% preferreds begin trading on NYSE

By Stephanie N. Rotondo

Seattle, July 6 – PennyMac Mortgage Investment Trust’s $175 million of 8% series B fixed-to-floating rate cumulative redeemable preferred stock were admitted to the New York Stock Exchange on Thursday, according to a market source.

The ticker symbol is “PMTPrB.”

The deal came to market on June 27 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 were 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.

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.

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