PennyMac Financial Services, Inc. (NYSE:PFSI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry into a Material Definitive Agreement.
On May 3, 2017, PennyMac Financial Services, Inc. (the Company),
through two of its controlled subsidiaries, PennyMac Loan
Services, LLC (PLS) and Private National Mortgage Acceptance
Company, LLC (PNMAC), entered into an amendment (the Repurchase
Amendment) to its Master Repurchase Agreement, dated as of
December 4, 2015, by and among Barclays Bank PLC (Barclays), PLS
and PNMAC (the Repurchase Agreement), to which PLS may sell, and
later repurchase, newly originated mortgage loans.The Repurchase
Agreement is used to fund newly originated mortgage loans that
are originated by PLS and held pending sale and/or
securitization. The obligations of PLS are fully guaranteed by
PNMAC. The mortgage loans are serviced by PLS.
On May 3, 2017, the Company, through PLS, also entered into an
amendment (the Participation Amendment) to its Mortgage Loan
Participation Purchase and Sale Agreement, dated as of December
4, 2015, by and between Barclays and PLS (the Participation
Agreement), to which PLS may sell to Barclays participation
certificates, each of which represents an undivided beneficial
ownership interest in a pool of mortgage loans that have been
pooled with Fannie Mae or Freddie Mac and are pending
securitization.
Barclays Repurchase Agreement
Under the terms of the Repurchase Amendment, the maximum
aggregate purchase price provided for in the Repurchase Agreement
was temporarily increased from $300 million to $500 million, the
available amount of which is reduced by (i) any outstanding
purchase amounts under the Participation Agreement, and (ii) any
outstanding borrowed amounts under that certain Loan and Security
Agreement, dated as of December 4, 2015, by and among PLS, as
borrower, PNMAC, as guarantor, and Barclays, as lender (the Loan
Agreement). The period of the increase runs from May 15, 2017 to
and including September 30, 2017. After September 30, 2017, the
Repurchase Amendment will expire and the maximum aggregate
purchase price under the Repurchase Agreement will revert back to
$300 million, the available amount of which is reduced by (i) any
outstanding purchase amounts under the Participation Agreement,
and (ii) any outstanding borrowed amounts under the Loan
Agreement.All other terms and conditions of the Repurchase
Agreement, including the $80 million committed amount thereunder,
remain the same in all material respects.
The foregoing descriptions of the Repurchase Amendment, the
Repurchase Agreement and the related guaranty do not purport to
be complete and are qualified in their entirety by reference to
(i) the full text of Amendment Number Three to the Master
Repurchase Agreement, which has been filed with this Current
Report on Form 8-K as Exhibit 10.1; and (ii) the description of
the Repurchase Agreement in the Companys Current Report on Form
8-K as filed on December 10, 2015, the full text of the Master
Repurchase Agreement attached thereto as Exhibit 10.1, and any
amendments filed thereafter.
Barclays Participation Agreement
Under the terms of the Participation Amendment, the maximum
aggregate purchase price provided for in the Participation
Agreement was temporarily increased from $300 million to $500
million, the available amount of which is reduced by (i) any
outstanding repurchase amounts under the Repurchase Agreement,
and (ii) any outstanding borrowed amounts under the Loan
Agreement. The period of the increase runs from May 15, 2017 to
and including September 30, 2017. After September 30, 2017, the
Participation Amendment will expire and the maximum aggregate
purchase price under the Participation Agreement will revert back
to $300 million, the available amount of which is also reduced by
(i) any outstanding repurchase amounts under the Repurchase
Agreement, and (ii) any outstanding borrowed amounts under the
Loan Agreement.All other terms and conditions of the
Participation Agreement, including the $80 million committed
amount thereunder, remain the same in all material respects.
The foregoing descriptions of the Participation Amendment and the
Participation Agreement do not purport to be complete and are
qualified in their entirety by reference to (i) the full text of
Amendment Number Two to the Mortgage Loan Participation Purchase
and Sale Agreement, which has been filed with this Current Report
on Form 8-K as Exhibit 10.2; and (ii) the description of the
Participation Agreement in the Companys Current Report on Form
8-K as filed on December 10, 2015, the full text of the Mortgage
Loan Participation Purchase and Sale Agreement attached thereto
as Exhibit 10.2, and any amendments filed thereafter.
Item 2.02 Results of Operations and Financial Condition.
On May 4, 2017, the Company issued a press release announcing
its financial results for the fiscal quarter ended March 31,
2017.A copy of the press release and the slide presentation
used in connection with the Companys recorded presentation of
financial results were made available on May 4, 2017 and are
furnished as Exhibit 99.1 and Exhibit 99.2, respectively.
The information in Item 2.02 of this report, including the
exhibits hereto, shall not be deemed filed for purposes of
Section 18 of the Securities Exchange Act of 1934, or otherwise
subject to the liabilities of Section 18, nor shall it be
deemed incorporated by reference into any disclosure document
relating to the Company, except to the extent, if any,
expressly set forth by specific reference in such filing.
Item 2.03Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The information set forth under Item 1.01 of this Current
Report on Form 8-K is incorporated herein by reference.
Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
|
Exhibit No. |
Description |
|
10.1 |
Amendment Number Three to the Master Repurchase |
|
10.2 |
Amendment Number Two to the Mortgage Loan Participation |
|
99.1 |
Press Release, dated May 4, 2017, issued by PennyMac |
|
99.2 |
Slide Presentation for use beginning on May 4, 2017 in |
About PennyMac Financial Services, Inc. (NYSE:PFSI)
PennyMac Financial Services, Inc. (PFSI) is a financial services company. The Company is focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States mortgage market. It operates through three segments: loan production, loan servicing and investment management. Its loan production segment is sourced through approximately two channels: correspondent production and consumer direct lending. Its loan servicing segment performs loan administration, collection and default management activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; counseling delinquent mortgagors, and supervising foreclosures and property dispositions. Its investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and closing investment asset acquisitions. PennyMac Financial Services, Inc. (NYSE:PFSI) Recent Trading Information
PennyMac Financial Services, Inc. (NYSE:PFSI) closed its last trading session down -1.30 at 16.05 with 313,383 shares trading hands.
