Bonds & Rates
Home›Bonds & Rates›Corporate Bonds›CCM parent prices $750 million 7.75% notes due 2031
CCM parent prices $750 million 7.75% notes due 2031
The offering came in 50% higher than previously expected and is set to close around Aug. 12, with proceeds used to repay part of its mortgage servicing rights line of credit.
CrossCountry Intermediate HoldCo, the parent of CrossCountry Mortgage, has priced an upsized $750 million offering of 7.75% senior notes due in 2031, according to HousingWire.
The senior unsecured notes are guaranteed by CrossCountry Mortgage and certain subsidiaries, and the deal is expected to close this week or around Aug. 12, subject to customary closing conditions. Proceeds will be used to repay a portion of CCM’s mortgage servicing rights line of credit and related fees and expenses.
HousingWire notes the offering price arrived at a level 50% higher than previously expected. A ratings firm expects a separate anticipated issuance related to the Two Harbors transaction to be rated “BB-(EXP),” and expects the proceeds to repay MSR-backed facilities drawn for that deal.
The Two Harbors transaction is expected to add a $159 billion servicing portfolio to CCM’s $202 billion book as of the first quarter, moving CCM from No. 15 to No. 8 among largest servicers by owned portfolios, HousingWire reports. Fitch estimates corporate leverage would rise to 2.4x after the acquisition, though retained earnings growth should bring leverage toward a 1.0x target over the medium term.