Rocket Companies Announces $1.2 Billion Senior Notes Offering
Rocket will use the offering, which is split between notes due 2031 and 2034, to pay down debt, including Senior Notes due this year.
Rocket Companies has debt and they want to use Senior Notes to pay it back.
The company – which includes Rocket Mortgage, Rocket Money, Rocket Loans, Rocket Close, Rocket Title Insurance Company, Redfin and eight other real estate, technology and marketing subsidiaries – plans to issue $1.2 billion in Senior Notes to pay down debt, including 2.875 percent Senior Notes due this year.
The $1.2 billion is split evenly between the aggregate principal amount of the senior notes due 2031 and 2034, Rocket Companies said explained in an announcement. The offering is exempt from registration under the Securities Act of 1933 and is being marketed only to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S.
The plan is likely to help the company maintain liquidity, HousingWire and several other publications to be explained on Tuesday.
The offering comes a month after Rocket’s first-quarter earnings, which Rocket CEO Varun Krishna called a “wild ride.”
Varun Krishna
Krishna said the upcoming partnership with Compass, advances in AI integration across Rocket’s businesses and a strong end-to-end transaction pipeline have made the company Teflon – real despite the continued volatility of mortgage and home sales.
Rocket has added $2 billion per month in loan volume over the past two quarters and serves 9.4 million homeowners, the largest number in the industry, with unpaid principal totaling $2.1 trillion.
“We have delivered strong performance in a volatile market. We use AI, data and distribution to create opportunities rather than waiting for the market to give them to us,” he said. “Rocket is not the same company it was three years ago. The shape of our company has not only changed, it has fundamentally evolved.”
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