PennyMac Financial Services Enters New Credit Agreement

Ticker: PFSI · Form: 8-K · Filed: 2024-11-01T00:00:00.000Z

Sentiment: neutral

Topics: debt, financing

TL;DR

PennyMac just signed a new credit deal, potentially boosting their cash flow.

AI Summary

On October 28, 2024, PennyMac Financial Services, Inc. entered into a material definitive agreement, specifically a credit agreement, which creates a direct financial obligation for the company. The filing details this agreement and its implications for the company's financial standing.

Why It Matters

This filing indicates PennyMac Financial Services has secured new financing, which could impact its liquidity and ability to fund operations or future growth.

Risk Assessment

Risk Level: medium — Entering into new debt obligations carries inherent financial risks, including interest rate fluctuations and repayment obligations.

Key Players & Entities

FAQ

What is the nature of the material definitive agreement entered into by PennyMac Financial Services, Inc.?

The filing indicates the agreement is a credit agreement, creating a direct financial obligation for the registrant.

When was the earliest event reported in this 8-K filing?

The earliest event reported was on October 28, 2024.

What is the state of incorporation for PennyMac Financial Services, Inc.?

PennyMac Financial Services, Inc. is incorporated in Delaware.

What is the principal executive office address for PennyMac Financial Services, Inc.?

The principal executive office is located at 3043 Townsgate Road, Westlake Village, California 91361.

What is the IRS Employer Identification Number for PennyMac Financial Services, Inc.?

The IRS Employer Identification Number is 83-1098934.

Filing Stats: 1,306 words · 5 min read · ~4 pages · Grade level 13.6 · Accepted 2024-11-01 06:03:22

Key Financial Figures

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On October 28 2024, PennyMac Financial Services, Inc. (the "Company"), through two of its indirect, wholly owned subsidiaries, PFSI ISSUER TRUST - FMSR ("Issuer Trust") and PennyMac Loan Services, LLC ("PLS"), entered into a new variable funding note ("VFN") repurchase agreement, as part of the structured finance transaction that PLS uses to finance Fannie Mae mortgage servicing rights and related excess servicing spread and servicing advance receivables. The Company entered into (i) a Series 2024-MSRVF1 Master Repurchase Agreement dated October 28, 2024 by and among PLS, as seller, Goldman Sachs Bank, USA, as administrative agent and as buyer ("Goldman") (the "Goldman Servicing Spread Agreement"), related to the excess servicing spread, and (ii) a Series 2024-MSRVF1 Indenture Supplement, dated October 28, 2024, by and among Issuer Trust, PLS, Citibank, N.A., as indenture trustee, and Goldman ("Goldman Indenture Supplement"). The maximum purchase price available from Goldman under the Goldman Servicing Spread Agreement is $225 million. The initial term of the Goldman Servicing Spread Agreement is set to expire on October 28, 2026 with the outstanding purchase price amortized over the following 12 months. The Company's direct, wholly owned subsidiary, Private National Mortgage Acceptance Company, LLC ("PNMAC"), guarantees the obligations of PLS under the Goldman Servicing Spread Agreement ("Goldman Guaranty"). The Goldman Servicing Spread Agreement provides additional financing for Fannie Mae mortgage servicing rights and related excess servicing spread in addition to that certain Master Repurchase Agreement, dated as of April 28, 2021, by and among Credit Suisse First Boston Mortgage Capital LLC, Credit Suisse AG, Cayman Islands Branch, and PLS, which has been subsequently assigned to Atlas Securitized Products, L.P., as assignee administrative agent and Nexera Holding LLC, as assignee buyer. Terms of the Gol

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 under Item 1.01 of this report is incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1^ Series 2024-MSRVF1 Master Repurchase Agreement, dated as of October 28, 2024, by and among PennyMac Loan Services, LLC and Goldman Sachs Bank USA 10.2^ Series 2024-MSRVF1 Indenture Supplement, dated October 28, 2024, by and among PFSI ISSUER TRUST - FMSR, PennyMac Loan Services, LLC, Citibank, N.A., and Goldman Sachs Bank USA 10.3 Series 2024-VF1 Guaranty (PLS FMSR), dated as of October 28, 2024 by Private National Mortgage Acceptance Company, LLC and PennyMac Loan Services, LLC in favor of Goldman Sachs Bank USA 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) ^ Portions of the exhibit have been redacted SIGNATURE 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. Dated: November 1, 2024 /s/ Daniel S. Perotti Daniel S. Perotti Senior Managing Director and Chief Financial Officer

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