PennyMac Mortgage Investment Trust (NYSE: PMT) announced today
the pricing of a private offering of secured term notes (the
“Notes”) in an aggregate principal amount of $355 million issued by
the Company’s indirect subsidiary, PMT ISSUER TRUST – FMSR. The
Notes mature on December 27, 2027 and were priced at SOFR + 2.75%.
The majority of the Notes were placed with funds and accounts
managed by PGIM Fixed Income, a Prudential Financial (NYSE: PRU)
company. Proceeds are expected to be used to redeem $305 million of
previously-issued term notes priced at SOFR + 4.19% due to mature
on June 25, 2027.
“I am very pleased with the attractive terms and successful
execution of this transaction, which highlights both our deep
access to the secured financing markets and strong relationships
with leading asset-based lenders like PGIM,” said Chairman and
Chief Executive Officer David Spector. “PGIM, with their strength
and experience in securitized products, has been a long-standing
partner of Pennymac and we are pleased to have them lead this
transaction.”
“We are excited to be long-standing partners to Pennymac across
a variety of mortgage financing solutions including MSR (Mortgage
Servicing Rights) and private CRT (Credit Risk Transfer). Our
flexible capital and extensive structuring capabilities provide
creative solutions for our financing partners as well as
differentiated asset-based finance investments for our clients,”
said Gabe Rivera, Managing Director and co-head of securitized
products at PGIM Fixed Income.
The Notes will not be registered under the Securities Act of
1933 (the “Securities Act”) or offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements of the Securities Act. This press release
shall not constitute an offer to sell or a solicitation of an offer
to buy nor shall there be any sale of these 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
state.
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.
About PGIM Fixed Income
PGIM Fixed Income is a global asset manager offering active
solutions across all fixed income markets. The company has offices
in Newark, NJ, London, Amsterdam, Paris, Sydney, Singapore, Munich,
Zurich, Hong Kong, and Tokyo. As of March 31, 2024, the PGIM Fixed
Income has $821 billion of assets under management including $403
billion in institutional assets, $175 billion in retail assets, and
$243 billion in proprietary assets. Over 1,000 institutional
clients have entrusted PGIM Fixed Income with their assets.
About PGIM
PGIM is the global asset management business of Prudential
Financial, Inc. (PFI). PFI has a history that dates back over 145
years and through more than 30 market cycles. With 41 offices in 19
different countries (as of March 31, 2024), our more than 1,450
investment professionals are located in key financial centers
around the world.
Our firm comprises multi-managers that collaborate with each
other and specialize in a particular asset class with a focused
investment approach. This gives our clients diversified solutions
with global depth and scale across public and private asset
classes, including fixed income, equities, real estate, private
credit, and other alternatives. As a leading global asset manager
with $1.34 trillion in assets under management (as of March 31,
2024), PGIM is built on a foundation of strength, stability and
disciplined risk management.
For more information, visit pgim.com.
Prudential Financial, Inc. (PFI) of the United States is not
affiliated in any manner with Prudential plc, incorporated in the
United Kingdom, or with Prudential Assurance Company, a subsidiary
of M&G plc, incorporated in the United Kingdom. For more
information please visit news.prudential.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 like “may,”
“will,” “should,” “potential,” “intend,” “expect,” “seek,”
“anticipate,” “estimate,” “approximately,” “believe,” “could,”
“project,” “predict,” “continue,” “plan” or other similar words or
expressions. Forward-looking statements are based on certain
assumptions, discuss future expectations, describe future plans and
strategies, contain financial and operating projections or state
other forward-looking information. Examples of forward-looking
statements include: (i) projections of the Company’s revenues,
income, earnings per share, capital structure or other financial
items; (ii) descriptions of the Company’s plans or objectives for
future operations, products or services; (iii) forecasts of the
Company’s future economic performance, interest rates, profit
margins and the Company’s share of future markets; and (iv)
descriptions of assumptions underlying or relating to any of the
foregoing expectations regarding the timing of generating any
revenues. The Company’s ability to predict results or the actual
effect of future events, actions, plans or strategies is inherently
uncertain. Although the Company believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, the Company’s actual results and
performance could differ materially from those set forth in the
forward-looking statements. There are a number of factors, many of
which are beyond the Company’s control, that could cause actual
results to differ significantly from its expectations. Some of
these factors are discussed below. Factors that could cause actual
results 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; changes in real estate
values, housing prices and housing sales; 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; 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 PFSI, PNMAC 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 PFSI,
PNMAC and PLS, and 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 its financing and the interest rates
and maturities of its 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 income; 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 its business; the Company’s ability to detect
misconduct and fraud; changes in the Company’s credit risk transfer
arrangements and agreements; 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 its 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 its 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 its 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 its
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 its charter documents. These factors are not necessarily all of
the important factors that could cause the Company’s actual results
and performance to differ materially from those expressed in or
implied by any of the Company’s forward-looking statements. Other
unknown or unpredictable factors also could adversely affect the
Company’s actual results and performance. Consequently, there can
be no assurance that the results or performance anticipated by the
Company will be realized or, even if substantially realized, that
they will have the expected consequences to or effects on the
Company. 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/20240703703379/en/
Media Lauren Padilla mediarelations@pennymac.com
805.225.8224
Investors Kevin Chamberlain Isaac Garden
investorrelations@pennymac.com 818.224.7028
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