PennyMac and UWM Announce New Debt Offerings

Proceeds will be used to “repay borrowings under the Company’s secured MSR facilities, other secured indebtedness, and for other general corporate purposes,” Pennymac said in a statement.
The offering is contingent upon market conditions and other factors. Later on Thursday, Pennymac announced that the notes will bear interest at 6.750% per annum and will mature on February 15, 2034.

In May, PennyMac issued $850 million in debt that matures in 2032, using the proceeds and cash on hand to redeem senior notes at 5.375% due in October 2025.

PennyMac’s debt-to-equity ratio stood at 3.4x at the end of June, slightly below its 3.5x target. The company said fluctuations are largely driven by the origination environment and other market opportunities.

As of June 30, the company had $4.25 billion in unsecured debt, $1.23 billion in secured term notes and loans, and $5.2 billion in secured revolving bank financing lines. Total liquidity, including cash and available borrowings with pledged collateral, stood at $4.2 billion.

Credit ratings agency Fitch estimates the remaining 2025 maturity wall at $1.5 billion for nonbank mortgage issuers under its coverage, with the number increasing to $2.2 billion in 2026.

On Thursday, UWM also signaled plans to issue debt soon to refinance existing notes.

“We continue to assess and evaluate the opportunistic refinancing of our $800 million unsecured notes maturing in November of 2025,” Rami Hasani, UWM’s chief financial officer, said during an earnings call with analysts.

In December, UWM raised $800 million through an unsecured debt offering, a 60% increase from its initial plan, to pay down MSR facilities and for general corporate purposes.

Other mortgage firms that have recently announced debt issuances include Rocket Companies, Better Home & Finance Holding Co., Rithm Capital and Planet Financial Group.

This story was updated at 5:30 p.m. ET to include the interest rate and maturity date.