The
new
senior
notes,
guaranteed
on
an
unsecured
senior
basis,
pay
6.875%
per
annum
and
mature
on
May
15,
2032.
The
proceeds
will
be
used
to
redeem
senior
notes
due
in
October
2025,
but
they
will
pay
a
lower
interest
rate
of
5.375%.

“Remaining
proceeds
will
be
used
for
the
repayment
of
borrowings
under
the
company’s
secured

MSR
[mortgage
servicing
rights]
facilities
and
other
secured
indebtedness
and
for
other
general
corporate
purposes,”
PennyMac
said
in
an
8-K
filing
with
the


Securities
and
Exchange
Commission
(SEC).

The
company
expects
to
close
the
transaction
on
May
8.
At
the
end
of
March,
PennyMac
had
$4
billion
in
unsecured
debt,
$1.7
billion
in
secured
term
notes
and
loans,
and
$5.2
billion
in
secured
revolving
bank
financing
lines.
Its
debt-to-equity
ratio
was
3.4
times,
slightly
lower
than
its
target
of
3.5
times. 

Like
PennyMac,
other
nonbank
mortgage
companies
are
expected
to
extend
their
debt
profile
in
the
coming
years.

Fitch
estimates
2025’s
maturity
wall
at
$1.5
billion
for
the
remainder
of
the
year,
picking
up
to
$2.2
billion
in
2026
for
nonbank
mortgage
issuers
under
its
coverage.
Companies
have
“repeatedly
demonstrated
access
to
unsecured
markets
and
should
be
able
to
refinance
at
economical
terms,”
Fitch
said. 

The
list
of
companies
that
recently
issued
debt
includes


Better
Home
&
Finance
Holding
Co.,


Rithm
Capital,


Planet
Financial
Group
and


United
Wholesale
Mortgage.