Planet Financial Group raises $475M in unsecured debt offering
Summary
Proceeds from the issuance are expected to repay outstanding senior secured debt.We were thrilled with the oversubscription of orders, which reflects the confidence of institutional investors in our multichannel business model, strength of financial risk management, and long-term strategy, Michael Dubeck, president and CEO of Planet Financial Group, told HousingWire in a statement. The rating reflects Planets modest but growing franchise as a correspondent and retail lender, as well as its established role as an agency and government servicer and subservicer.Connecticut-based Planet, founded in 2007, had 236 sponsored loan officers and 47 active branches as of Friday, according to the Nationwide Multistate Licensing System.The company originated about $13.5 billion in mortgages between January and September, marking a 33.7% year-over-year decline, according to estimates from Inside Mortgage Finance (IMF). While Fitch notes that the firm is well positioned for growth, it also highlights that competition within the correspondent channel and the companys smaller scale compared to its peers constrain its rating.Regarding its servicing book, Planet reached $97.5 billion in owned mortgage servicing rights (MSRs) as of September, per IMF. Fitch pointed to a relatively smaller scale compared to competitors, higher leverage, and the potential impact of valuation marks as rates decrease and prepayments increase. The offering, priced at 6.625% with senior notes maturing in 2030, was aimed at qualified investors.Freedom Mortgage, loanDepot, Mr. Cooper and PennyMac have also issued debt over the past two years, leveraging refinancing opportunities and extending terms.Editors note: This story was updated with comments from Planet Financial Group.