WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--
PennyMac Financial Services, Inc. (NYSE: PFSI) (the “Company”) today
announced the pricing of its second private offering of secured term
notes in an aggregate principal amount of $500 million to be issued by
the Company’s indirect controlled subsidiary, PNMAC GMSR ISSUER TRUST
(the “Trust”). The secured term notes will be offered only to qualified
institutional buyers, as defined in the Securities Act of 1933, as
amended (the “Securities Act”), pursuant to Rule 144A under the
Securities Act. The offering is expected to close on August 10, 2017,
subject to customary closing conditions.
“PennyMac's Ginnie Mae financing structure provides us with the ability
to issue additional term notes as our Ginnie Mae MSR asset grows,” said
Executive Chairman Stanford L. Kurland. “This represents a paradigm
shift in our access to capital that significantly enhances our growth
potential and our ability to meet the needs of an evolving mortgage
market.”
“We are very pleased with the market reception to our second term note
offering,” said President and Chief Executive Officer David A. Spector.
“Strong investor participation in the transaction allowed us to lower
our borrowing costs in this second term note issuance and obtain five
year term financing, which more closely aligns with the expected life of
the underlying asset. We believe that the success of this transaction
reflects our strong performance and leadership position within the U.S.
mortgage market.”
The secured term notes mature on August 25, 2022 and are collateralized
by Ginnie Mae mortgage servicing rights (MSRs) and excess servicing
spread (ESS) evidenced by participation certificates, which are sold to
the Trust by one of the Company’s subsidiaries, PennyMac Loan Services,
LLC (“PLS”), under a master repurchase agreement. The secured term notes
will bear interest at a rate of one month LIBOR plus 4.00 percent per
annum and the maturity date can be extended though a one year step-up
provision at the Company’s discretion. The secured term notes will be
issued by the Trust pursuant to the terms of an amended and restated
base indenture, which is further described in the Company’s Current
Report on Form 8-K filed February 23, 2017, and the terms of a
supplemental indenture to be executed in connection with the proposed
offering, and will rank pari passu with the term notes due February 25,
2020. PLS’ obligations to the Trust under the master repurchase
agreement will be guaranteed by the Company’s direct controlled
subsidiary, Private National Mortgage Acceptance Company, LLC.
For more information, please refer to the investor presentation
available at www.ir.pennymacfinancial.com.
The secured term notes have not been and are not expected to be
registered under the Securities Act or any state securities laws and,
unless so registered, may not be offered or sold in the United States or
to U.S. persons absent an applicable exemption from the registration
requirements of the Securities Act and applicable state securities laws.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an
offer, solicitation or sale of any security in any jurisdiction in which
such offering, solicitation or sale would be unlawful.
PennyMac Financial Services, Inc. is a specialty financial services firm
with a comprehensive mortgage platform and integrated business focused
on the production and servicing of U.S. mortgage loans and the
management of investments related to the U.S. mortgage market. PennyMac
Financial Services, Inc. trades on the New York Stock Exchange under the
symbol “PFSI.” Additional information about PennyMac Financial Services,
Inc. is available at www.ir.pennymacfinancial.com
Forward Looking Statements
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, regarding management’s beliefs, estimates, projections and
assumptions with respect to, among other things, the Company’s financial
results, future operations, business plans and investment strategies, as
well as industry and market conditions, all of which are subject to
change. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,”
and other expressions or words of similar meanings, as well as future or
conditional verbs such as “will,” “would,” “should,” “could,” or “may”
are generally intended to identify forward-looking statements. Actual
results and operations for any future period may vary materially from
those projected herein and from past results discussed herein. Factors
which could cause actual results to differ materially from historical
results or those anticipated include, but are not limited to: the
continually changing federal, state and local laws and regulations
applicable to the highly regulated industry in which we operate;
lawsuits or governmental actions that may result from any noncompliance
with the laws and regulations applicable to our businesses; the mortgage
lending and servicing-related regulations promulgated by the Consumer
Financial Protection Bureau and its enforcement of these regulations;
our dependence on U.S. government-sponsored entities and changes in
their current roles or their guarantees or guidelines; changes to
government mortgage modification programs; the licensing and operational
requirements of states and other jurisdictions applicable to the
Company’s businesses, to which our bank competitors are not subject;
foreclosure delays and changes in foreclosure practices; certain banking
regulations that may limit our business activities; our dependence on
the multifamily and commercial real estate sectors for future
originations of commercial mortgage loans and other commercial real
estate related loans; changes in macroeconomic and U.S. real estate
market conditions; difficulties inherent in growing loan production
volume; difficulties inherent in adjusting the size of our operations to
reflect changes in business levels; purchase opportunities for mortgage
servicing rights and our success in winning bids; changes in prevailing
interest rates; increases in loan delinquencies and defaults; our
reliance on PennyMac Mortgage Investment Trust (NYSE: PMT) as a
significant source of financing for, and revenue related to, our
mortgage banking business; any required additional capital and liquidity
to support business growth that may not be available on acceptable
terms, if at all; our obligation to indemnify third-party purchasers or
repurchase loans if loans that we originate, acquire, service or assist
in the fulfillment of, fail to meet certain criteria or characteristics
or under other circumstances; our obligation to indemnify PMT and the
Investment Funds if its services fail to meet certain criteria or
characteristics or under other circumstances; decreases in the returns
on the assets that we select and manage for our clients, and our
resulting management and incentive fees; the extensive amount of
regulation applicable to our investment management segment; conflicts of
interest in allocating our services and investment opportunities among
us and our advised entities; the effect of public opinion on our
reputation; our recent growth; our ability to effectively identify,
manage, monitor and mitigate financial risks; our initiation of new
business activities or expansion of existing business activities; our
ability to detect misconduct and fraud; and our ability to mitigate
cybersecurity risks and cyber incidents. You should not place undue
reliance on any forward-looking statement and should consider all of the
uncertainties and risks described above, as well as those more fully
discussed in reports and other documents filed by the Company with the
Securities and Exchange Commission from time to time. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements or any other information contained herein,
and the statements made in this press release are current as of the date
of this release only.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170808006404/en/
PennyMac Financial Services, Inc.
Media
Stephen Hagey
(805)
530-5817
or
Investors
Christopher Oltmann
(818)
264-4907
Source: PennyMac Financial Services, Inc.