By Paul A. Harris
Portland, Ore., Jan. 24 – Freedom Mortgage Holdings LLC priced an upsized $500 million issue of five-year senior notes (B2/B/B+) at par to yield 9¼% in a Wednesday drive-by, according to market sources.
The issue size increased from $450 million.
J.P. Morgan Securities LLC was the lead.
The yield printed at the tight end of the 9¼% to 9½% yield talk. Initial guidance was in the high-9% area.
Prior to the release of price talk the deal was heard to be three-times oversubscribed, a trader said.
The mortgage lender, which is based in Mount Laurel, N.J., plans to use the proceeds to refinance debt.
| Issuer: | Freedom Mortgage Holdings LLC
|
| Amount: | $500 million, increased from $450 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 1, 2029
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 516 bps
|
| First call: | Feb. 1, 2026 at 104.625
|
| Trade date: | Jan. 24
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody’s: B2
|
| S&P: B
|
| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Drive-by
|
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