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PennyMac Mortgage amends exchangeable notes terms

EditorLina Guerrero
Published 06/21/2024, 04:39 PM
PMT
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PennyMac Mortgage (NYSE:PMT) Investment Trust (NYSE:PMT) has entered into a Fifth Supplemental Indenture modifying the terms of its exchangeable senior notes, as per a recent SEC filing. The agreement, effective today, impacts the 5.500% Exchangeable Senior Notes due in 2024 and 2026, fully guaranteed by PennyMac.

The amendment stipulates that PennyMac Corp., a wholly-owned subsidiary, irrevocably waives its right to opt for Physical Settlement in any future exchanges of the notes. Additionally, for any Combination Settlement, the cash portion settled per $1,000 principal amount will not be less than $1,000. This adjustment provides clarity on the minimum cash payout to note holders during exchanges.

The Fifth Supplemental Indenture, dated June 21, 2024, follows the Base Indenture from April 30, 2013, and supplements from November 7, 2019, and March 5, 2021. The new terms aim to streamline future transactions involving these securities.

PennyMac Mortgage Investment Trust , incorporated in Maryland, operates within the real estate investment trusts sector, with its principal executive office in Westlake Village, California. The trust's securities, including common shares and various series of preferred shares, are traded on the New York Stock Exchange.

InvestingPro Insights

In light of PennyMac Mortgage Investment Trust's recent modifications to their exchangeable senior notes, investors may find the following InvestingPro Insights particularly relevant. According to InvestingPro data, PennyMac (NYSE:PMT) boasts a robust Market Cap of approximately $1.19 billion USD and an attractive P/E Ratio of 8.22, suggesting a potentially undervalued stock in relation to its earnings. Notably, the company has demonstrated impressive revenue growth over the last twelve months as of Q1 2024, with a staggering 97.5% increase, although it is important to note a quarterly decline of 55.05% during the same period.

InvestingPro Tips highlight that analysts have recently revised their earnings expectations upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Additionally, PennyMac has a strong track record of returning value to shareholders, maintaining dividend payments for 15 consecutive years with a significant dividend yield of 11.62% as of the latest data.

For investors seeking a deeper analysis and more InvestingPro Tips, there are additional insights available on the InvestingPro platform. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and uncover valuable information that could inform your investment strategy. With several more tips available, including expectations around profitability and sales trends, InvestingPro offers a comprehensive view of PennyMac's financial landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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