WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--
PennyMac Mortgage Investment Trust (NYSE: PMT) (the “Company”) today
announced the pricing of a private offering of secured term notes in an
aggregate principal amount of $450 million to be issued by the Company’s
indirect subsidiary, PMT ISSUER TRUST – FMSR (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 April 25, 2018, subject to customary closing
conditions.
“PMT’s issuance of term notes is an important development for the
Company’s capital structure. This innovative structure for financing
Fannie Mae MSRs represents the culmination of a year-long effort in
close partnership with Fannie Mae,” said President and Chief Executive
Officer David A. Spector. “This transaction significantly strengthens
PMT’s liquidity profile by providing long-term financing from a broad
group of institutional investors at attractive economic terms.”
The secured term notes will mature on April 25, 2023, and are
collateralized by Fannie Mae mortgage servicing rights (MSRs) and excess
servicing spread (ESS) related to such MSRs. The collateralization is
evidenced by participation certificates, which are sold to the Trust by
one of the Company’s subsidiaries, PennyMac Corp. (“PMC”), under a
master repurchase agreement. The secured term notes will be issued by
the Trust pursuant to the terms of a base indenture, which is further
described in the Company’s Current Report on Form 8-K filed December 27,
2017, and the terms of a supplemental indenture to be executed in
connection with the proposed offering. The secured term notes bear
interest at a rate of one month LIBOR plus 2.35 percent per annum and
the maturity date can be extended through a two-year step-up provision
at the Company’s discretion. The term notes have been assigned an
investment grade rating of BBB- by Kroll Bond Rating Agency. PMC’s
obligations to the Trust under the master repurchase agreement will be
guaranteed by the Company.
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.
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. PennyMac Mortgage Investment Trust common
shares trade on the New York Stock Exchange under the symbol “PMT.” PMT
is externally managed by PNMAC Capital Management, LLC, a controlled
subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). Additional
information about PennyMac Mortgage Investment Trust is available at www.PennyMac-REIT.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: changes in
our investment objectives or investment or operational strategies,
including any new lines of business or new products and services that
may subject us to additional risks; volatility in our industry, the debt
or equity markets, the general economy or the real estate finance and
real estate markets specifically; events or circumstances which
undermine confidence in the financial markets or otherwise have a broad
impact on financial markets; changes in general business, economic,
market, employment and 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 mortgage loans and
mortgage-related assets that satisfy our investment objectives; the
inherent difficulty in winning bids to acquire mortgage loans, and our
success in doing so; the concentration of credit risks to which we are
exposed; the degree and nature of our competition; the availability,
terms and deployment of short-term and long-term capital; the adequacy
of our cash reserves and working capital; our ability to maintain the
desired relationship between our financing and the interest rates and
maturities of our assets; the timing and amount of cash flows, if any,
from our investments; unanticipated increases or volatility in financing
and other costs, including a rise in interest rates; the performance,
financial condition and liquidity of borrowers; incomplete or inaccurate
information or documentation provided by customers or counterparties, or
adverse changes in the financial condition of our customers and
counterparties; changes in the number of investor repurchases or
indemnifications and our ability to obtain indemnification or demand
repurchase from our correspondent sellers; increased rates of
delinquency, default and/or decreased recovery rates on our investments;
increased prepayments of the mortgages and other loans underlying our
mortgage-backed securities or relating to our mortgage servicing rights,
excess servicing spread and other investments; our exposure to market
risk and declines in credit quality and credit spreads; the degree to
which our hedging strategies may or may not protect us from interest
rate volatility; the effect of the accuracy of or changes in the
estimates we make about uncertainties, contingencies and asset and
liability valuations when measuring and reporting upon our financial
condition and results of operations; changes in regulations or the
occurrence of other events that impact the business, operation or
prospects of government sponsored enterprises; changes in government
support of homeownership; changes in governmental regulations,
accounting treatment, tax rates and similar matters; our ability to
mitigate cybersecurity risks and cyber incidents; our exposure to risks
of loss with real estate investments resulting from adverse weather
conditions and man-made or natural disasters; our ability to satisfy
complex rules in order to qualify as a REIT for U.S. federal income tax
purposes; our ability to make distributions to our shareholders in the
future; and our organizational structure and certain requirements in our
charter documents. 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/20180423005444/en/
PennyMac Mortgage Investment Trust
Media
Stephen Hagey
(805)
530-5817
or
Investors
Christopher Oltmann
(818)
224-7028
Source: PennyMac Mortgage Investment Trust