PennyMac Financial Services Enters Material Agreement, Incurs Obligation

TL;DR

PMF just signed a big deal and took on debt. Keep an eye on this.

AI Summary

On May 23, 2024, PennyMac Financial Services, Inc. filed an 8-K report detailing a material definitive agreement and a direct financial obligation. The filing indicates the company entered into a new agreement and incurred a financial obligation, though specific details of the agreement and obligation are not provided in this excerpt.

Why It Matters

This filing signals a significant new financial commitment or partnership for PennyMac, which could impact its future operations and financial standing.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and incurring financial obligations can introduce new risks related to performance, market conditions, and financial leverage.

Key Players & Entities

• PennyMac Financial Services, Inc. (company) — Registrant
• New PennyMac Financial Services, Inc. (company) — Former company name
• May 23, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.0001 — ge on which registered Common Stock, $0.0001 par value PFSI New York Stock Excha
• $650,000,000 — announced offering (the "Offering") of $650,000,000 aggregate principal amount of the Issue

Filing Documents

• tm2415344d1_8k.htm (8-K) — 32KB
• tm2415344d1_ex4-1.htm (EX-4.1) — 1105KB
• 0001104659-24-064686.txt ( ) — 1533KB
• pfsi-20240523.xsd (EX-101.SCH) — 3KB
• pfsi-20240523_lab.xml (EX-101.LAB) — 33KB
• pfsi-20240523_pre.xml (EX-101.PRE) — 22KB
• tm2415344d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On May 23, 2024 (the "Closing Date"), PennyMac Financial Services, Inc. (the "Issuer" and, together with its subsidiaries, the "Company") closed the previously announced offering (the "Offering") of $650,000,000 aggregate principal amount of the Issuer's 7.125% Senior Notes due 2030 (the "Notes"). The Issuer sold the Notes to the initial purchasers in the Offering, which was exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). The Notes were offered for resale to purchasers reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. Proceeds from the Offering will be used to repay borrowings under the Company's secured MSR facilities, other secured indebtedness, and for other general corporate purposes. The Notes were issued pursuant to the Indenture, dated as of May 23, 2024 (the "Indenture"), among the Issuer, the guarantors party thereto, and U.S. Bank Trust Company, National Association, as trustee. Interest on the Notes accrues beginning on May 23, 2024 at a rate of 7.125% per year. Interest on the Notes is payable semi-annually on May 15 and November 15 of each year, commencing on November 15, 2024. The Notes mature on November 15, 2030. The Indenture contains customary terms, events of default and covenants for an issuer of non-investment grade debt securities. These covenants include limitations on, among other things, incurring additional debt or issuing certain preferred shares, paying dividends on or making other distributions in respect of capital stock or making other restricted payments, making certain investments, selling or transferring certain assets, creating liens on certain assets to secure debt, consolidating, merging, selling or otherwise disposing of all or substantially all assets,

03 Creation of a Direct Financial Obligation or an Obligation

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in

01 of this Current Report relating to the Indenture is incorporated by reference into this Item 2.03

Item 1.01 of this Current Report relating to the Indenture is incorporated by reference into this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 4.1 Indenture, dated as of May 23, 2024, among PennyMac Financial Services, Inc., the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee, relating to the 7.125% Senior Notes due 2030 4.2 Form of Global Note for 7.125% Senior Notes due 2030 (included in Exhibit 4.1) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PENNYMAC FINANCIAL SERVICES, INC. Date: May 23, 2024 /s/ Daniel S. Perotti Daniel S. Perotti Senior Managing Director and Chief Financial Officer