PennyMac Mortgage Investment Trust Announces Public Offering of Senior Notes
18 September 2023 - 2:23PM
Business Wire
PennyMac Mortgage Investment Trust (NYSE: PMT) (the “Company”)
today announced that it is commencing an underwritten public
offering of senior notes due 2028 (the “Notes”). The Notes will be
fully and unconditionally guaranteed on a senior unsecured basis by
PennyMac Corp., an indirect wholly-owned subsidiary of the Company.
The Company intends to use the net proceeds from the offering to
fund its business and investment activities, which may include: the
acquisition of mortgage servicing rights, government-sponsored
entity credit risk transfer securities and other mortgage-related
securities; funding the Company’s correspondent lending business,
including the purchase of Agency-eligible residential mortgage
loans; repayment of other indebtedness, which may include the
repurchase or repayment of a portion of PennyMac Corp.’s 5.50%
exchangeable notes due 2024 or secured financing; and for other
general business purposes. The interest rate and other terms of the
Notes will be determined at the time of pricing the offering. Piper
Sandler & Co., Janney Montgomery Scott LLC and Ladenburg
Thalmann & Co. Inc. are serving as joint book-running managers
for the offering. A.G.P. / Alliance Global Partners and William
Blair & Company, L.L.C. are serving as co-managers for the
offering.
The Company intends to apply to list the Notes on the New York
Stock Exchange under the symbol “PMTU.”
The offering is being made pursuant to an effective shelf
registration statement and prospectus and related prospectus
supplement, a copy of which, when available, may be obtained free
of charge at the SEC’s website at www.sec.gov or from the
underwriters by contacting: Piper Sandler & Co. at 1251 Avenue
of the Americas, 6th Floor, New York, NY 10020, or by contacting
Piper Sandler & Co. by email at fsg-dcm@psc.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the Company’s securities,
nor shall there be any sale of the Company’s securities in any
state in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such state or jurisdiction.
About PennyMac Mortgage Investment Trust
PennyMac Mortgage Investment Trust is a mortgage real estate
investment trust (REIT) that invests primarily in residential
mortgage loans and mortgage-related assets. PMT is externally
managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary
of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional
information about PennyMac Mortgage Investment Trust is available
at pmt.pennymac.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. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as “may,”
“will,” “should,” “potential,” “intend,” “expect,” “seek,”
“anticipate,” “estimate,” “approximately,” “believe,” “could,”
“project,” “predict,” “continue,” “plan” or other similar words or
expressions. Factors that could cause the Company’s actual results
and performance to differ materially from historical results or
those anticipated include, but are not limited to: changes in
interest rates and other macroeconomic conditions; the Company’s
ability to comply with various federal, state and local laws and
regulations that govern the Company’s business; changes in the
Company’s investment objectives or investment or operational
strategies, including any new lines of business or new products and
services that may subject it to additional risks; the degree and
nature of the Company’s competition; volatility in the Company’s
industry, the debt or equity markets, the general economy or the
real estate finance and real estate markets specifically, whether
the result of market events or otherwise; events or circumstances
which undermine confidence in the financial and housing markets or
otherwise have a broad impact on financial and housing markets,
such as the sudden instability or collapse of large depository
institutions or other significant corporations, terrorist attacks,
natural or man-made disasters, or threatened or actual armed
conflicts; changes in general business, economic, market,
employment and domestic and international political conditions, or
in consumer confidence and spending habits from those expected;
declines in real estate or significant changes in U.S. housing
prices or activity in the U.S. housing market; the availability of,
and level of competition for, attractive risk-adjusted investment
opportunities in loans and mortgage-related assets that satisfy the
Company’s investment objectives; the inherent difficulty in winning
bids to acquire loans, and the Company’s success in doing so; the
concentration of credit risks to which the Company is exposed; the
Company’s dependence on PCM and PennyMac Loan Services, LLC
(“PLS”), potential conflicts of interest with such entities and
their affiliates, and the performance of such entities; changes in
personnel and lack of availability of qualified personnel at PCM,
PLS or their affiliates; the availability, terms and deployment of
short-term and long-term capital; the adequacy of the Company’s
cash reserves and working capital; the Company’s substantial amount
of debt; the Company’s ability to maintain the desired relationship
between the Company’s financing and the interest rates and
maturities of the Company’s assets; the timing and amount of cash
flows, if any, from the Company’s investments; the Company’s
exposure to risks of loss and disruptions in operations resulting
from adverse weather conditions, man-made or natural disasters,
climate change and pandemics such as the COVID-19 pandemic;
unanticipated increases or volatility in financing and other costs,
including a rise in interest rates; the performance, financial
condition and liquidity of borrowers; the ability of the Company’s
servicer, which also provides the Company with fulfillment
services, to approve and monitor correspondent sellers and
underwrite loans to investor standards; incomplete or inaccurate
information or documentation provided by customers or
counterparties, or adverse changes in the financial condition of
the Company’s customers and counterparties; the Company’s
indemnification and repurchase obligations in connection with loans
it purchases and later sells or securitizes; the quality and
enforceability of the collateral documentation evidencing the
Company’s ownership and rights in the assets in which it invests;
increased rates of delinquency, default and/or decreased recovery
rates on the Company’s investments; the performance of loans
underlying mortgage-backed securities in which the Company retains
credit risk; the Company’s ability to foreclose on its investments
in a timely manner or at all; the degree to which the Company’s
hedging strategies may or may not protect it from interest rate
volatility; the effect of the accuracy of or changes in the
estimates the Company makes about uncertainties, contingencies and
asset and liability valuations when measuring and reporting upon
the Company’s financial condition and results of operations; the
Company’s ability to maintain appropriate internal control over
financial reporting; technology failures, cybersecurity risks and
incidents, and the Company’s ability to mitigate cybersecurity
risks and cyber intrusions; the Company’s ability to obtain and/or
maintain licenses and other approvals in those jurisdictions where
required to conduct the Company’s business; the Company’s ability
to detect misconduct and fraud; the impact to the Company’s credit
risk transfer arrangements and agreements of increased borrower
requests for forbearance under the Coronavirus Aid, Relief and
Economic Security Act; developments in the secondary markets for
the Company’s loan products; legislative and regulatory changes
that impact the loan industry or housing market; changes in
regulations that impact the business, operations or governance of
mortgage lenders and/or publicly-traded companies or such changes
that increase the cost of doing business with such entities; the
Consumer Financial Protection Bureau and the Company’s issued and
future rules and the enforcement thereof; changes in government
support of homeownership; the Company’s ability to effectively
identify, manage and hedge the Company’s credit, interest rate,
prepayment, liquidity, and climate risks; changes in government or
government-sponsored home affordability programs; limitations
imposed on the Company’s business and the Company’s ability to
satisfy complex rules for it to qualify as a REIT for U.S. federal
income tax purposes and qualify for an exclusion from the
Investment Company Act of 1940 and the ability of certain of the
Company’s subsidiaries to qualify as REITs or as taxable REIT
subsidiaries for U.S. federal income tax purposes, as applicable,
and the Company’s ability and the ability of the Company’s
subsidiaries to operate effectively within the limitations imposed
by these rules; changes in governmental regulations, accounting
treatment, tax rates and similar matters (including changes to laws
governing the taxation of REITs, or the exclusions from
registration as an investment company); the Company’s ability to
make distributions to the Company’s shareholders in the future; the
Company’s failure to deal appropriately with issues that may give
rise to reputational risk; and the Company’s organizational
structure and certain requirements in the Company’s charter. 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: https://www.businesswire.com/news/home/20230917083367/en/
Media Kristyn Clark kristyn.clark@pennymac.com
805.395.9943
Investors Kevin Chamberlain Isaac Garden
investorrelations@pennymac.com 818.224.7028
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