Pennymac has priced a new offering of senior notes, which will carry a 6.750% interest rate and mature on February 15, 2034. In a statement, the company said the proceeds will be used to repay borrowings under its secured MSR facilities, other secured indebtedness, and for general corporate purposes.
This move follows a similar action in May, when Pennymac issued $850 million in debt maturing in 2032 to redeem senior notes due in October 2025.
As of the end of June, Pennymac reported a debt-to-equity ratio of 3.4x, just below its 3.5x target, noting that fluctuations are primarily driven by the origination environment. The company’s total liquidity stood at $4.2 billion, supported by a capital structure including $4.25 billion in unsecured debt and $5.2 billion in secured revolving bank financing lines.
This activity reflects a wider trend among nonbank mortgage lenders preparing for upcoming debt deadlines. According to credit rating agency Fitch, nonbank issuers face a $1.5 billion “maturity wall” in 2025, which increases to $2.2 billion in 2026.
Following this trend, United Wholesale Mortgage (UWM) also indicated its own plans to issue debt. During a recent earnings call, CFO Rami Hasani said the company is “assessing and evaluating the opportunistic refinancing” of $800 million in unsecured notes that mature in November 2025. Last December, UWM raised $800 million through an unsecured debt offering to pay down MSR facilities and for general corporate needs.
Several other major mortgage firms have also recently entered the debt markets, including Rocket Companies, Better Home & Finance Holding Co., Rithm Capital, and Planet Financial Group.
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