Terms

Series

6.75% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest

Liquidation Preference

$25.00

Coupon Rate

6.75%

Rate Type

Fixed

Annual Dividend

$1.69

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 24, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations, All Liabilities Of Pennymac Mortgage Investment Trust And Subsidiaries; Pari Passu With: 8.125% Series A Fixed-To-Floating Rate Cumulative Redeemable Preferred Shares, 8.000% Series B Fixed-To-Floating Rate Cumulative Redeemable Preferred Shares; Senior To: All Common Shares, All Junior Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Shares Offered

10,000,000

Prospectus Summary

PennyMac Mortgage Investment Trust is offering 10 million shares of its 6.75% Series C Cumulative Redeemable Preferred Shares, each with a $25.00 liquidation preference and par value of $0.01. The preferred shares pay fixed annual dividends of $1.6875 per share ($0.421875 quarterly) on March 15, June 15, September 15, and December 15, with the first dividend of $0.52031 per share due December 15, 2021. Dividends are cumulative, meaning missed payments accumulate and must be paid before any distribution to common or junior preferred shareholders. The shares have no stated maturity date and will remain outstanding indefinitely unless redeemed by the company. The Series C Preferred Shares rank senior to all common shares and junior preferred shares, but rank on equal footing (pari passu) with the existing 8.125% Series A and 8.000% Series B Preferred Shares. The security is effectively subordinated to all debt obligations of PennyMac and its subsidiaries—as of June 30, 2021, approximately $11.9 billion of indebtedness ranked senior. The company may redeem the shares prior to the August 24, 2026 call date if needed to maintain REIT tax qualification, a regulatory capital trigger explicitly embedded in the terms. After August 24, 2026, the company has a voluntary optional redemption right at $25.00 per share plus accrued dividends. At par, the effective yield is 6.75% annually. Because PennyMac is a mortgage REIT, dividends on the Series C Preferred Shares do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available to individuals, nor do they qualify for the corporate dividends-received deduction (DRD). Instead, REIT dividends flow through to holders and are taxed according to the composition of the issuer's taxable income. Dividends are paid quarterly with a record date on the 1st of the month in which payment occurs. A strict dividend stopper applies: no distributions may be made to common shareholders or parity/junior preferred holders, and no redemptions of such shares permitted, unless and until all cumulative dividends on the Series C Preferred Shares are fully paid or declared and set aside for all past periods.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Prevents payment of dividends on common shares and junior/parity preferred shares, and prevents redemptions of such shares, unless and until all cumulative dividends on the Series C Preferred Shares have been paid or declared and set aside for all past dividend periods.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 52 (Average)