HousingWireHousingWire
Mortgage companies remain active in the debt market. This time, PennyMac Mortgage Investment Trust and loanDepot announced on Monday the issuance of senior notes to support their business operations, investments and to retire existing debt.
PennyMac will issue unsecured senior notes due in 2030, following an $850 million offering by PennyMac Financial Services in an oversubscribed transaction earlier in May.
The company plans to use the proceeds to invest in subordinated bonds from its private-label securitization (PLS) activities, acquire mortgage servicing rights (MSRs), and fund its correspondent lending business by purchasing agency-eligible mortgages.
It will also repurchase or repay a portion of its 5.50% exchangeable senior notes due in 2026. The new notes, guaranteed by subsidiary PennyMac Corp., will be listed on the New York Stock Exchange.
Seven institutions are coordinating the offering: Morgan Stanley, Goldman Sachs, RBC Capital Markets, UBS Investment Bank, Wells Fargo Securities, Keefe, Bruyette & Woods and Piper Sandler.
Meanwhile, loanDepot is redeeming debt due in October 2025 by issuing $200 million in notes via its subsidiary loanDepot GMSR Master Trust.
The notes carry a variable interest rate based on the Secured Overnight Financing Rate (SOFR), mature in May 2030 and include an option to extend for two additional years. They are secured by Ginnie Mae MSRs.
The transaction “highlights the strength and breadth of loanDepot’s financing strategy and attractive capital raising alternatives,” said David Hayes, loanDepot’s chief financial officer.
Nomura Securities International served as the manager and the initial purchaser of the notes. In early May, Fitch estimated 2025’s maturity wall at $1.5 billion for the remainder of the year, picking up to $2.2 billion in 2026 for nonbank mortgage issuers under its coverage. The list of companies that recently issued debt includes Better Home & Finance Holding Co., Rithm Capital, Planet Financial Group and United Wholesale Mortgage.
