Rocket Companies has extended the deadline for investors to exchange debt issued by a Mr. Cooper Group subsidiary for the lender’s own paper — a step tied to its $9.4 billion acquisition[1] of the competitor.
The deadline moved from Sept. 2 to Sept. 30, still leaving enough time for the deal to close in the fourth quarter as planned. Rocket[2] also signaled it may extend the deadline again until the acquisition and settlement align.
In a statement, the company said it “anticipates further extending the Expiration Date until such time that the Mr. Cooper[3] Acquisition may be consummated substantially concurrently with the Settlement Date.”
The exchange offer covers $750 million in senior notes due in 2029 at 6.5% and $1 billion in senior notes due in 2032 at 7.125%. There are also notes due in 2030 paying 5.125% and others due in 2031 paying 5.75%. The debt was first issued by Nationstar Mortgage Holdings.
Participation has been high, with 98.4% of 2029 notes, 88.3% of 2030 notes, 89.3% of 2031 notes and 95.5% of 2032 notes already tendered and not withdrawn.
Recently, Rocket refinanced debt tied to its Mr. Cooper acquisition.
Rocket priced $4 billion[4] in senior unsecured notes — $2 billion due in 2030 at 6.125% and $2 billion due in 2033 at 6.375%. The proceeds will primarily redeem the notes of Nationstar, a Mr. Cooper subsidiary, that mature between 2026 and 2028. Fitch Ratings[5] assigned the notes a BBB- rating.
The Federal Housing Finance Agency (FHFA) approved[6] the merger in late August, imposing a 20% cap[7] on Fannie Mae and Freddie Mac servicing exposure for the combined company.
In a statement given to HousingWire, a Rocket Companies spokesperson said, “We are pleased to have cleared FHFA’s review in our pending acquisition of Mr. Cooper, which we expect to close in the fourth quarter.“
References
- ^ $9.4 billion acquisition (www.housingwire.com)
- ^ Rocket (www.housingwire.com)
- ^ Mr. Cooper (www.housingwire.com)
- ^ priced $4 billion (www.housingwire.com)
- ^ Fitch Ratings (www.housingwire.com)
- ^ approved (www.housingwire.com)
- ^ 20% cap (www.housingwire.com)