By Rebecca Melvin
New York, Nov. 5 – PennyMac Corp. priced $200 million five-year exchangeable senior notes at par to yield 5.5% with an initial exchange premium of 10% on Monday, according to a company news release.
The company is a subsidiary of PennyMac Mortgage Investment Trust, which is guarantor of the notes.
Pricing of the Rule 144A notes came at the price points of revised talk. Initially the deal was being talked at a 4.75% to 5.25% yield with an initial exchange premium of 10% to 15%.
J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are joint bookrunners of the deal, which has a $30 million greenshoe.
The notes are non-callable, and there is an investor put upon a fundamental change.
The proceeds are earmarked for general corporate purposes, including funding the investment activity of PennyMac and its subsidiaries, which may include investments in credit risk transfer securities, mortgage servicing rights, mortgage-backed securities and new products such as home equity lines of credit or prime, non-qualified mortgage loans, as well as the repayment of debt and working capital.
Westlake Village, Calif.-based PennyMac is a real estate investment trust.
| Issuer: | PennyMac Corp.
|
| Guarantor: | PennyMac Mortgage Investment Trust
|
| Issue: | Exchangeable senior notes
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | Nov. 1, 2024
|
| Bookrunners: | J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Exchange premium: | 10%
|
| Exchange price: | $24.94
|
| Exchange ratio: | 40.1010
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Price talk: | 5.5%, up 10%, revised from 4.75%-5.25%, up 10%-15%
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 7
|
| Distribution: | Rule 144A
|
| Stock symbol: | NYSE: PMT
|
| Stock price: | $22.67 at close Nov. 4
|
| Market capitalization: | $2.07 billion
|
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