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Rocket Companies announced a plan to issue $4 billion in debt amid its proposed acquisitions of real estate platform Redfin and mortgage lender and servicer Mr. Cooper Group, according to a statement released Tuesday.
Proceeds from the offering will primarily be used to redeem existing debt issued by Nationstar Mortgage Holdings (NMH), a subsidiary of Mr. Cooper, on the closing date of the deal. While the offering is not contingent on the completion of the deals, it includes a mandatory redemption clause if the Mr. Cooper acquisition does not close by Sept. 30, 2026.
The offering includes $2 billion in unsecured senior notes due in 2030 and another $2 billion due in 2033, available to qualified institutional buyers. Initially, the notes will be guaranteed by Rocket Mortgage, and upon deal completion, by certain Redfin and Mr. Cooper entities as well.
Rocket disclosed its proposed $1.75 billion acquisition of Redfin and $9.4 billion deal for Mr. Cooper in March.
Rocket will use the proceeds to pay fees and redeem NMH’s 5% senior notes due in 2026, its 6% notes due in 2027, and its 5.5% notes due in 2028 at par, plus accrued interest. Notes with later maturities — including those due between 2029 and 2032 — may also be redeemed.
Additional proceeds may be used to repay secured debt across Rocket, Redfin and Mr. Cooper after the deals close.
Rocket’s move comes amid a wave of debt issuance by nonbank mortgage lenders, although this $4 billion offering significantly outpaces others.
On Monday, PennyMac Mortgage Investment Trust and loanDepot also announced new note offerings to support operations and investments and to refinance existing obligations.
PennyMac plans to issue unsecured senior notes due in 2030, although the size has yet to be disclosed. loanDepot is issuing $200 million in notes due in 2030, secured by Ginnie Mae mortgage servicing rights (MSRs), to redeem notes maturing in October 2025.
Fitch Ratings recently estimated that the 2025 maturity wall for nonbank mortgage issuers totals $1.5 billion and will grow to $2.2 billion in 2026.
Other recent issuers include Better Home & Finance Holding Co., Rithm Capital, Planet Financial Group and United Wholesale Mortgage (UWM).
