PennyMac Financial Services, Inc. (NYSE:PFSI) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01Entry into a Material Definitive Agreement.

PennyMac Financial Services, Inc. (the Company), through its
subsidiary, Private National Mortgage Acceptance Company, LLC
(the Borrower), entered into an amended and restated credit
agreement, dated as of November 18, 2016, by and among the
Borrower, the lenders that are parties thereto, Credit Suisse AG,
as administrative agent and collateral agent, and Credit Suisse
Securities (USA) LLC, as sole bookrunner and sole lead arranger
(the Credit Agreement), to which the lenders have agreed to make
revolving loans to the Borrower in an amount not to exceed $150
million. Interest on the loans shall accrue at a per annum rate
of interest equal to, at the election of the Borrower, either an
alternate base rate (as defined in the Credit Agreement) or LIBOR
plus the applicable margin. During the existence of certain
events of default, interest shall accrue at a higher default
rate. The maturity date of the loans is 364 days following the
date of the Credit Agreement. The proceeds of the loans are to be
used solely for working capital and general corporate purposes of
the Borrower and its subsidiaries.

to the terms of an amended and restated collateral and guaranty
agreement, dated as of November 18, 2016, by and among the
Borrower, as grantor, Credit Suisse AG, Cayman Islands Branch, as
collateral agent, and the Company and certain of its
subsidiaries, PNMAC Capital Management, LLC, PennyMac Loan
Services, LLC and PNMAC Opportunity Fund Associates, LLC, as
guarantors and grantors, the obligations of the Borrower under
the Credit Agreement are guaranteed by each of the referenced
guarantors and secured by a grant by each of the referenced
grantors of their respective right, title and interest in and to
limited and otherwise unencumbered (other than with respect to
specified permitted encumbrances) specified contract rights,
specified deposit accounts, all documents and instruments related
to such specified contract rights and specified deposit accounts,
and any and all proceeds and products thereof.

The loans are subject to mandatory prepayment in certain
circumstances, including, but not limited to, (i) from time to
time to the extent necessary to cure any non-compliance with
certain asset coverage ratios, and (ii) upon the issuance of
certain permitted unsecured indebtedness in an amount not to
exceed $500 million and only to the extent of the net cash
proceeds related thereto.

The Borrower is also subject to:

(i) customary affirmative covenants, including, but not limited
to, monthly, quarterly and annual financial reporting,
maintenance of existence, compliance with statutes and applicable
laws (including environmental laws), payment of taxes, use of
proceeds, maintenance of ratings, and designation of restricted
and unrestricted subsidiaries;

(ii) customary negative covenants, including, but not limited to,
restrictions on liens, restrictions on mergers, sales of assets
and related transactions, restrictions on dividends and other
restricted payments, restrictions on indebtedness, restrictions
on transactions with affiliates, limitation on creation of
subsidiaries, and restrictions on prepayment of indebtedness;

(iii) certain financial covenants in addition to the asset
coverage ratios referenced above, including compliance with
certain defined ratios relating to interest expense coverage,
corporate indebtedness to consolidated EBITDA, and consolidated
indebtedness to consolidated tangible net worth; and

(iv) customary events of default, including those related to
payment defaults, covenant violations, breaches of
representations and warranties, cross defaults to other
indebtedness in excess of $35 million and insolvency;

in each case, subject to applicable cure periods, baskets,
materiality standards and exceptions.

The Credit Agreement amends and restates that certain credit
agreement, dated as of December 30, 2015, by and among the
Borrower, the lenders that are parties thereto, Credit Suisse AG
and Credit Suisse Securities (USA) LLC(the Original Agreement).
The primary purposes of the amendment and restatement were to
increase the maximum revolving loan amount from $100 million to
$150 million and extend the maturity date thereof. All other
terms and conditions of the Original Agreement remain the same in
all material respects.

The foregoing descriptions of the Credit Agreement and the
amended and restated collateral and guaranty agreement do not
purport to be complete and are qualified in their entirety by
reference to the full text of these agreements, which have been
filed with this Current Report on Form 8-K as Exhibits 10.1 and
10.2, respectively.

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 up +0.30 at 17.15 with 242,598 shares trading hands.