PennyMac Financial Services Prices Upsized Private Offering of $750M 7.875% Senior Notes due 202
Portfolio Pulse from Benzinga Newsdesk
PennyMac Financial Services has upsized its private offering to $750 million of 7.875% Senior Notes due 2029, an increase from the initially announced $650 million. The notes will pay semi-annual interest and are set to mature on December 15, 2029. The proceeds will be used to repay part of the company's secured term notes due in 2025 and for general corporate purposes. The offering is expected to close on December 11, 2023.
December 07, 2023 | 7:06 am
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PennyMac Financial Services has increased its private offering of senior notes to $750 million, which will be used to repay existing debt and for general corporate purposes.
The upsizing of the offering indicates a strong demand for PennyMac's debt instruments, which could be seen as a positive sign by investors. However, the high interest rate of 7.875% reflects the cost of borrowing and could impact the company's interest expenses. The use of proceeds to repay debt is generally viewed favorably, but the impact on the stock price is likely to be neutral in the short term as the market absorbs the details of the offering.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100