The majority of Rocket holders with senior debt that's part of the tender offer and exchange related to the Mr. Cooper acquisition approved it, and the expiration was extended Tuesday.
This suggests
Rocket Cos. is extending the expiration date for the tender offer and exchange applicable to the investors in some of its senior debt due in the next five or six years.
Nearly $574.13 million of 5.125% notes due in 2030 and almost $535.77 million of the 5.75% debt due in 2031 were tendered, according to D.F. King & Co., the depositary and information agent for the offers and consent solicitations. Almost $738.06 million in 6.5% notes due 2029 and nearly $955.24 million in 7.125% debt due in 2032 were exchanged.
Rocket had previously received the tender offer earlier for the notes due in 2030 and 2031, and the 2029 and 2032 notes were exchanged earlier.
Fannie Mae and Freddie Mac's oversight agency approved the deal on the condition that each maintain "strict counterparty risk concentration limits at 20%" of the two government-sponsored enterprises' servicing market and observe safety and soundness protocols.
Depending on the definition of servicing used, analysts estimate that on a pro forma basis Rocket and Mr. Cooper combined would have a share somewhere between 13% and somewhat below 20% on a pro forma basis.
Rocket plans to close the acquisition in the fourth quarter, according to a statement that a spokesperson distributed at the time of that conditional approval.
The new deadline gives the bondholders until the end of the third quarter, or Sept. 30, to close on the consent solicitations and tender offers, and Rocket could further extend the expiration date to correlate with closing.
Mr. Cooper has been prominent as a servicer while Rocket has been known as a leading nonbank mortgage lender and fintech. In addition to entering into the agreement to buy Mr. Cooper in March, Rocket
