Browsed by
Tag: PennyMac

PennyMac Financial Services, Inc. Announces Proposed Private Offering of Additional 5.375% Senior Notes

PennyMac Financial Services, Inc. Announces Proposed Private Offering of Additional 5.375% Senior Notes


PennyMac Financial Services, Inc. (NYSE: PFSI) (the “Company”) today announced that it intends to offer an additional amount of its 5.375% Senior Notes due 2025 (such additional amount, the “New Notes”). The New Notes will be issued under the indenture governing the Company’s $500 million aggregate principal amount of 5.375% Senior Notes due 2025 issued on September 29, 2020 (the “Existing Notes”). The New Notes, if issued, will be treated as a single series with the Existing Notes and will have the same terms as the Existing Notes, other than with respect to the date of issuance and the issue price.

The Company intends to use the net proceeds from this offering for general corporate purposes, which may include the repayment of the Company’s existing secured warehouse borrowings. The offering is subject to market conditions and other factors. The offering will be made solely by means of a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons pursuant to Regulation S under the Securities Act.

The New Notes have not been and are not expected to be registered under the Securities Act or under 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 Financial Services, Inc.

PennyMac Financial Services, Inc.

Read the rest
Best Stocks for 2020: PennyMac Financial Is an Election-Proof Winner

Best Stocks for 2020: PennyMac Financial Is an Election-Proof Winner

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

Editor’s note: This column is part of’s Best Stocks for 2020 contest. Louis Navellier’s pick for the contest is PennyMac Financial Services (NYSE:PFSI). 

Bright blue logo that reads "10 Best Stocks for 2020 by InvestorPlace."

It might not be a household name, but PennyMac Financial Services (NYSE:PFSI) is certainly getting the attention of investors these days.

PFSI is one of the top four mortgage lenders and servicers in the United States. And it’s the No. 1 issuer of government loans like Federal Housing Administration and Veterans Administration mortgage products. This is an especially good sector — and one set to shine — since these loans are underwritten by the U.S. government. Why does this matter? It takes some of the risk off the originator.

Perhaps the reason you have not heard of this company is that it’s relatively new to the market, opening its doors in the teeth of the financial crisis in 2008 and going public in 2013. Some of the major players have been around for decades, if they survived the devastation of the financial crisis.

Before PFSI launched its IPO, it spun off a sister company, PennyMac Mortgage Investment Trust (NYSE:PMT), which is structured as a real estate investment trust (REIT). This illustrates the savvy management at PFSI.

Sisters PFSI and PMT Work Perfectly Together

This arrangement allows PFSI to originate the loans and then sell them PMT to service. As a REIT, PMT offers a big dividend, currently around 10%. PFSI can focus on the growth side of the business without having to manage the risk on the back end.

It is a testament to this hedging strategy that PMT is down 25% in the past year due to pandemic default risks while PFSI is up 95% over the same time

Read the rest