Private National Mortgage Acceptance Co. LLC, a company better known as PennyMac, has created a real estate investment trust that it plans to take public to raise funds for loan purchases.
PennyMac Mortgage Investment Trust filed a prospectus for an initial public offering Friday with the Securities and Exchange Commission. The prospectus listed the target proceeds at $750 million but said the estimate was made solely for the purpose of calculating the registration fee.
PennyMac's executives and its two backers, BlackRock Inc. and Highfields Capital Management LP, would buy 5% of the REIT for up to $40 million in a concurrent private placement.
The REIT would use the money raised from the stock sales to buy distressed loan portfolios from the Federal Deposit Insurance Corp., the Treasury Department's Public-Private Investment Program and sellers that cannot participate in that program, such as mortgage companies, insurance companies and foreign banks. The REIT would pay management and loan servicing fees to PennyMac.
The Calabasas, Calif., company also manages two funds which have raised $584 million, of which $226 million has been invested. PennyMac has 90 employees, according to the prospectus.
Its chairman and chief executive officer is Stanford Kurland, the former president and chief operating officer of Countrywide Financial Corp., which is now part of Bank of America Corp.