Rocket Companies Reports Agreement Termination & New Obligation

Ticker: RKT · Form: 8-K · Filed: 2024-07-02T00:00:00.000Z

Sentiment: neutral

Topics: agreement-termination, financial-obligation

Related Tickers: RKT

TL;DR

Rocket just ditched one deal and signed up for a new financial commitment. Big changes brewing.

AI Summary

On July 2, 2024, Rocket Companies, Inc. filed an 8-K to report the termination of a material definitive agreement and the creation of a direct financial obligation. The filing indicates a shift in the company's financial arrangements, though specific details of the agreement and obligation are not fully elaborated in the provided text.

Why It Matters

This filing signals a change in Rocket Companies' contractual and financial standing, which could impact its future operations and financial obligations.

Risk Assessment

Risk Level: medium — The termination of a material agreement and the creation of a new financial obligation suggest potential shifts in the company's financial strategy or operational landscape.

Key Players & Entities

FAQ

What was the material definitive agreement that was terminated?

The provided text does not specify the details of the material definitive agreement that was terminated.

What is the nature of the new direct financial obligation created?

The filing indicates the creation of a direct financial obligation, but the specific terms and nature of this obligation are not detailed in the provided excerpt.

When did the events reported in this 8-K occur?

The earliest event reported in this 8-K occurred on July 2, 2024.

What is Rocket Companies, Inc.'s principal executive office address?

Rocket Companies, Inc.'s principal executive offices are located at 1050 Woodward Avenue, Detroit, MI 48226.

What is the filing date of this 8-K report?

This 8-K report was filed on July 2, 2024.

Filing Stats: 848 words · 3 min read · ~3 pages · Grade level 12.5 · Accepted 2024-07-02 16:05:55

Key Financial Figures

Filing Documents

01 Entry into Material Definitive Agreement

Item 1.01 Entry into Material Definitive Agreement. On July 2, 2024 (the "Closing Date"), Rocket Mortgage, LLC (the "Company"), a Michigan limited liability company and indirect subsidiary of Rocket Companies, Inc., as borrower, entered into a new Revolving Credit Agreement (the "2024 Credit Agreement") with the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent (the "Administrative Agent"), and the other parties party thereto, with an initial aggregate commitment of $1.15 billion, maturing on July 2, 2027. Proceeds of the borrowings under the 2024 Credit Agreement will be used for general corporate purposes. Borrowings under the 2024 Credit Agreement are unsecured and will bear interest at a rate equal to a base rate (which may include a term SOFR rate) plus an applicable margin. In addition, the 2024 Credit Agreement requires the Borrower to pay a commitment fee (determined based on the Company's corporate credit rating) in respect of the unused commitments under the 2024 Credit Agreement. The 2024 Credit Agreement contains certain customary events of default, including in the event of a change of control, and certain covenants and restrictions that limit the Borrower's and its subsidiaries' ability to, among other things, incur additional debt; create liens on certain assets; pay dividends on or make distributions in respect of their capital stock or make other restricted payments; consolidate, merge, sell, or otherwise dispose of all or substantially all of their assets; and enter into certain transactions with their affiliates. The Company is also subject to certain financial maintenance covenants under the 2024 Credit Agreement, which require the Company and its subsidiaries to not exceed specified net leverage and corporate net debt ratios at the end of each fiscal quarter, and to maintain minimum liquidity and tangible net worth. If the Company fails to perform its obligations under these and other covenants, or should any ev

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. On the Closing Date, the Company terminated the Revolving Credit Agreement, dated as of August 10, 2022 (the "2022 Credit Agreement"), among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A. No early termination penalties or prepayment premium were incurred by the Company in connection with the termination of the 2022 Credit Agreement. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information contained under Item 1.01 above is hereby incorporated in this Item 2.03 by reference.

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. Date: July 2, 2024 ROCKET COMPANIES, INC. By: /s/ Tina V. John Name: Tina V. John Title: Executive Legal Counsel and Secretary

View on Read The Filing