PennyMac Mortgage Investment Trust (PMT) priced a $75 million offering of 8.500% exchangeable senior notes due 2029 through its wholly‑owned subsidiary, PennyMac Corp., on December 11, 2025. The notes are a reopening of the series that was first issued in May 2024 and are part of the same offering structure.
The notes carry a fixed coupon of 8.500% and mature in 2029. Holders can exchange the notes for PMT common shares at an initial exchange price of approximately $15.79 per share, a premium of about 25% to the December 11 closing price of $12.61. The expected net proceeds are roughly $75.5 million.
The proceeds will be used to repay portions of secured mortgage‑servicing‑right (MSR) and advance‑facility borrowings, to retire part of PMT’s 5.500% exchangeable notes due 2026, and for general corporate purposes. This mix of debt repayment and working‑capital support aligns with PMT’s strategy of matching debt maturities to the life of its mortgage‑related assets while maintaining a low‑cost capital base.
The reopening of the 2024 series reflects PMT’s ongoing use of exchangeable senior notes as a flexible financing tool. The company has previously issued $200 million of 8.500% notes due 2029 in May 2024 and $300 million of 5.500% notes due 2026 in March 2021, demonstrating a consistent pattern of leveraging this instrument to fund its credit‑sensitive and interest‑rate‑sensitive investment strategies.
Management emphasized that the new notes provide a “low‑cost source of capital” that can be deployed into its core mortgage‑investment activities. The company’s recent third‑quarter 2025 results showed strong earnings and a book value per share of $15.16, supporting confidence in its ability to service the new debt and continue dividend payments.
The offering also supports PMT’s broader capital‑allocation plan, which includes redeploying capital from maturing credit‑risk‑transfer (CRT) investments and supporting its private‑label securitization cadence. By raising additional capital, PMT positions itself to capture opportunities in the mortgage‑securitization market while maintaining a disciplined debt profile.
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