PennyMac Stock Offering May Help Fund Its Jumbo Loan Purchases

PennyMac Mortgage Investment Trust, Moorpark, Calif., late Tuesday filed information on the pricing of an underwritten public offering of 11.3 million common shares in a move it said may help fund among other things its correspondent lending business, including continuing purchases of jumbo loans.

The company said it may also use the net proceeds from the offering to fund other business and investment activities, including the purchase of distressed mortgages and other investments, repaying debt and general corporate purposes.

The underwriters have a 30-day option from the date of the offering to purchase up to an additional 1,695,000 shares from the company and have offered the shares from time to time for sale in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale.

Settlement of the offering, subject to customary closing conditions, is expected to occur on Aug. 19.

Citigroup, Credit Suisse Securities (USA) LLC, JPMorgan and Morgan Stanley are acting as the underwriters for the offering.