PennyMac Financial Services has completed a private offering of $650 million of secured term notes.
The notes will be issued by the company's indirectly controlled subsidiary PNMAC GMSR Issuer Trust.
The secured term notes mature on Feb. 25, 2023. They bear interest at a rate of one month LIBOR plus 2.85% per annum.
PennyMac Financial also redeemed the first secured term note issuance, series 2017-GT1. The redemption amount for the notes was $400 million plus all accrued and unpaid interest.
"The continued strong market reception for the term notes offered by the Trust allowed us to effectively refinance our first term note issuance, and with this new transaction we increased the principal amount from $400 million to $650 million, substantially reduced the interest rate and extended the maturity," President and CEO David Spector said in a statement.
