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April 05, 2017
Cadwalader advised PennyMac Financial Services, Inc. (the “Company”), through three of its subsidiaries, PennyMac Loan Services, LLC (“PLS”), Private National Mortgage Acceptance Company, LLC (“PNMAC”), and a newly formed special purpose entity, PNMAC GMSR ISSUER TRUST (“Issuer Trust”), on a novel capital markets finance transaction that allows PLS to finance its Ginnie Mae mortgage servicing rights (“MSRs”) and excess servicing spread relating to such MSRs (“ESS”) (the “GNMA MSR Facility”) through the private offering of secured term notes in an aggregate principal amount of $400 million (the “Notes”) by the Issuer Trust.
The GNMA MSR Facility utilizes a novel structured finance-inspired transaction structure that provides the Company with enhanced access to capital and liquidity, sets a precedent for other Ginnie Mae servicers to similarly finance their Ginnie Mae MSRs, and creates a new market for the sales and trading of securities backed by Ginnie Mae MSRs.
PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market. PennyMac Financial Services, Inc. trades on the New York Stock Exchange under the symbol “PFSI.”
The Cadwalader team was led by Capital Markets partner Chris Gavin, special counsels Michael McCormack and David Ridenour, and associates Michelle Abad and Ryan Brown, with the assistance of Tax partner Gary Silverstein and associate James Saeli, and Bankruptcy partner Mark Ellenberg and associate Kathryn Borgeson.