Cadwalader Advises PennyMac Mortgage Investment Trust on Financing of Fannie Mae Mortgage Servicing Rights and Related Private Offering of Secured Term Notes

May 04, 2018

Contact(s)

Ron Brandsdorfer
New York
+1 212 504 6712
ron.brandsdorfer@cwt.com

Cadwalader advised PennyMac Mortgage Investment Trust (the “Company”), through its subsidiary, PennyMac Corp. (“PMC”), and a newly formed special purpose entity, PMT ISSUER TRUST—FMSR (“Issuer Trust”), on an innovative capital markets finance transaction that allows PMC to finance its Fannie Mae mortgage servicing rights (“MSRs”) and excess servicing spread relating to such MSRs (“ESS”) (the “PennyMac FMSR Facility”) through the private offering of secured term notes in an aggregate principal amount of $450 million by the Issuer Trust. 

The PennyMac FMSR Facility follows the novel structured finance-inspired transaction structure that Cadwalader assisted developing for the PennyMac Loan Services’ Ginnie Mae MSR portfolio, provides the Company with enhanced access to capital and liquidity and boosting the new market for the sales and trading of securities backed by MSRs.

The Company is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PennyMac Mortgage Investment Trust common shares trade on the New York Stock Exchange under the symbol “PMT.” PMT is externally managed by PNMAC Capital Management, LLC, a controlled subsidiary of PennyMac Financial Services, Inc. (NYSE: PFSI).

The Cadwalader team was led by Capital Markets partner Chris Gavin, senior attorney Taylor Speers, and associates Michelle Abad and Corey Scott, with the assistance of Tax partner Gary Silverstein, Bankruptcy partner Ingrid Bagby, counsel Eric Waxman and associate Kathryn Borgeson.

 

CadwaladerSpotlight

January 14-16 | Cadwalader is sponsoring the 2019 CREFC January Conference in Miami.

CREFC is the trade association for the commercial real estate finance industry.

Cadwalader's research and intelligence platform provides analysis on changes in U.S. financial regulation. Subscribers receive a daily newsletter interpreting new laws, rules and enforcement actions that impact financial institutions.