The Other PennyMac IPO

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PennyMac Financial Services is a newly formed holding company affiliated with the Private National Mortgage Acceptance Company. The company has filed its S-1 registration statement with the Securities and Exchange Commission to allow it come public via an initial public offering. No financial terms have been set other than that its public offering will be for as much as $287.5 million in common stock.

The filing shows that it expects to list on the New York Stock Exchange, but no ticker has been designated. This one has ties back to PennyMac Mortgage Investment Trust (NYSE: PMT). PennyMac Financial Services was founded by former Countrywide president (and COO and CFO) Stanford Kurland. Citigroup, Merrill Lynch, Credit Suisse Securities and Goldman Sachs will act as joint book-running managers for the offering.

It said:

Our principal investment management subsidiary, PNMAC Capital Management, LLC, or PCM, is an SEC registered investment adviser. It manages PennyMac Mortgage Investment Trust, or PMT, a mortgage "real estate investment trust," or REIT, listed on the New York Stock Exchange.

PennyMac's Advised Entities have been some of the leading nonbank investors in distressed mortgage loans since 2008, investing in loans with more than $5.9 billion of unpaid principal balances. Advised Entities had combined net assets of approximately $1.8 billion as of September 30, 2012.

The company stated:

We are a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans and the management of investments related to the U.S. residential mortgage market. We believe that our operating capabilities, specialized expertise, access to long-term investment capital, and our management's deep experience across all aspects of the mortgage business will allow us to profitably grow these activities and capitalize on other related opportunities as they arise in the future. … We were founded in 2008 by members of our executive leadership team and two strategic partners, BlackRock and Highfields. Since our founding we have pursued opportunities to acquire and manage residential mortgage loans and established what we believe to be a best-in-class mortgage platform.


Filed under: 24/7 Wall St. Wire, IPOs & Secondaries, REIT Tagged: PMT