"The Company expects to use the net proceeds from the offering to repay a portion of the amounts outstanding under CCM's mortgage servicing rights line of credit, to pay related fees and expenses and for general corporate purposes, CCM said in a statement. In a recent interview with HousingWire, CEO and founder Ron Leonhardt said CCM considered, but ultimately passed on, high-yield offerings in 2021 and 2022 due to unfavorable pricing."
"In September, the company announced the issuance of $900 million in debt at 6.50%, due in 2030.Our inaugural offering was over seven times oversubscribed; we had approximately 200 institutional investors. We did extremely well. Investors believe in the story and the financial makeup of the company, Leonhardt said. Other mortgage companies that have issued debt recently include UWM Holdings Corp., which closed a $1 billion senior notes issuance in early September."
The Company expects to use the net proceeds from the offering to repay a portion of the amounts outstanding under CCM's mortgage servicing rights line of credit, to pay related fees and expenses and for general corporate purposes. CCM considered but ultimately passed on high-yield offerings in 2021 and 2022 because pricing was unfavorable. In September the company announced the issuance of $900 million in debt at 6.50%, due in 2030. The inaugural offering was over seven times oversubscribed, attracting approximately 200 institutional investors and indicating strong investor confidence. Several other mortgage firms have issued debt recently.
Read at www.housingwire.com
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