By Paul A. Harris
Portland, Ore., Jan. 13 – Home Point Capital Inc. priced an upsized $550 million issue of five-year senior notes (B2/B) at par to yield 5% on Wednesday, according to market sources and a press release.
The issue size increased from $500 million.
The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low-to-mid 5% area.
The deal played to $1.7 billion of orders across 95 accounts, a trader said.
The deal is expected to trade fairly well, the source said, spotting the new Home Point Capital 5% notes trading at par ¾ bid, 101¼ offered at Wednesday’s close.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included Credit Suisse Securities (USA) LLC, SPC Capital, BofA Securities Inc., Goldman Sachs & Co. LLC, UBS Securities LLC, Barclays, KKR Capital Markets LLC, Morgan Stanley & Co. LLC and Amherst.
The Ann Arbor, Mich.-based mortgage originator and servicer plans to use up to half of the proceeds to fund a distribution to its owners and the rest to repay debt under its mortgage servicing rights facility.
| Issuer: | Home Point Capital Inc.
|
| Amount: | $550 million, increased from $500 million
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| Maturity: | 2026
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| Securities: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, SPC Capital, BofA Securities Inc., Goldman Sachs & Co. LLC, UBS Securities LLC, Barclays, KKR Capital Markets LLC, Morgan Stanley & Co. LLC and Amherst
|
| Coupon: | 5%
|
| Price: | Par
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| Yield: | 5%
|
| Call protection: | Two years
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| Trade date: | Jan. 13
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| Settlement date: | Jan. 19
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| Ratings: | Moody's: B2
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Roadshow
|
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