Rocket Cos. has priced two senior note offerings aimed at helping it better manage other debt as the due dates for some of its outstanding borrowings have neared.
The two sets of unregistered notes offered under Rule 144A to institutional buyers in the United States and Regulation S to European investors were set to be sized at $600 million each. Rocket increased the 6.125% senior note offering due in 2031 to $900 million. It also offered $600 million in 6.5% senior notes due 2034.
Rocket intends to repay Rocket Mortgage LLC's 2.875% senior notes due this year with the proceeds. It also plans to repay the same entity's 5.25% senior notes due 2028 and satisfy other obligations the company and its subsidiaries have.
All of the company's subsidiaries, collectively and individually, are guaranteeing the new
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Rocket plans to redeem the 2026 and 2028 notes at a price equal to 100% of the principal amount plus interest due if the new offerings close.
The company's stock price initially moved higher when the new debt offerings were first announced on Tuesday, rising from near $12.36 day-end Monday to as high as $13.17 before giving back some of those gains on Wednesday. Shares were trading at $12.64 as of midday.
Rocket completed two large acquisitions in the past year, both of which were all stock deals. The company bought
