PennyMac Financial Services announced the pricing of a private offering of $500 million of secured term notes.

The notes will be issued by the company's indirectly controlled subsidiary PNMAC GMSR Issuer Trust.

The offering is expected to close Aug. 10.

The notes will mature Aug. 25, 2022, and are collateralized by Ginnie Mae mortgage servicing rights and excess servicing spread evidenced by participation certificates, which are sold to the trust by PennyMac Financial subsidiary PennyMac Loan Services LLC under a master repurchase agreement. The notes will bear interest at a rate of one-month London Interbank Offered Rate plus 4%.