PennyMac to issue senior notes due 2030, seeks to expand investments

WESTLAKE VILLAGE, Calif. – PennyMac Mortgage Investment Trust (NYSE: PMT), a real estate investment trust specializing in residential mortgage loans and mortgage-related assets, announced today its plan to launch an underwritten public offering of senior notes due in 2030. These notes will be guaranteed by PennyMac Corp., a direct, wholly-owned subsidiary of the company. The trust is managed by PNMAC Capital Management, LLC, a subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI), which has shown impressive growth with a 66.25% revenue increase over the last twelve months and maintains a robust 91.46% gross profit margin, according to InvestingPro data.

The proceeds from the sale of these senior notes are earmarked for a variety of business and investment activities. Specifically, PennyMac intends to invest in subordinated bonds from its private-label securitization activities, purchase other mortgage-related securities, acquire mortgage servicing rights, and fund its correspondent lending business, which includes buying Agency-eligible residential mortgage loans. Additionally, the company may use the funds to repay other debts, which could involve repurchasing or paying off a portion of PennyMac Corp.’s 5.50% exchangeable senior notes due in 2026 or other secured financing. InvestingPro analysts maintain a bullish outlook on PFSI, with multiple experts revising earnings estimates upward for the upcoming period.

The interest rate and terms of the notes will be set upon the pricing of the offering. Moreover, PennyMac plans to apply to list the notes on the New York Stock Exchange under the symbol "PMTW."

A team of financial institutions, including Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, UBS Investment Bank, Wells Fargo Securities, LLC, Keefe, Bruyette & Woods, Inc., and Piper Sandler & Co., are acting as joint book-running managers for the offering.

The offering will be made in accordance with an effective shelf registration statement, prospectus, and related prospectus supplement, which can be obtained from the underwriters or free of charge at the SEC’s website.

This press release, however, does not constitute an offer to sell or a solicitation of an offer to buy any of the company’s securities, and there will be no sale of these securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of that state or jurisdiction.

PennyMac Mortgage Investment Trust is managed by PNMAC Capital Management, LLC, a subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI). With a market capitalization of $4.84 billion and trading at a P/E ratio of 14.96, PFSI shows strong financial metrics according to InvestingPro, which offers comprehensive analysis and over 10 additional ProTips for this stock in its detailed Pro Research Report, available exclusively to subscribers. The information in this article is based on a press release statement.

In other recent news, PennyMac Financial Services, Inc. reported first-quarter 2025 earnings that missed analyst expectations. The company’s earnings per share (EPS) were $1.42, significantly below the forecasted $2.78, and revenue came in at $430.9 million against an estimated $522.21 million. In addition to this, PennyMac announced plans to issue $650 million in Senior Notes due 2032, with the intention of using the proceeds to redeem existing notes and for general corporate purposes. Meanwhile, Keefe, Bruyette & Woods maintained an ’Outperform’ rating on PennyMac, citing the company’s strong servicing portfolio as a positive factor in a challenging mortgage environment. Analysts at Keefe also noted that companies like PennyMac could benefit from higher volumes in the upcoming quarters due to seasonal trends. Furthermore, PennyMac revealed its strategic focus on operational efficiencies, highlighting investments in AI and technology as key areas for future growth. The company also aims to increase its broker direct market share to 10% by 2026, which reflects its ongoing efforts to strengthen its market position.

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