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Crosscountry Mortgage Issues $600m In Debt For Msr Repayments

CrossCountry Mortgage (CCM) issued $600 million in debt, primarily to repay an outstanding mortgage servicing rights (MSR) line of credit, among other general corporate purposes, the company announced Tuesday.

The transaction, handled through its parent company CrossCountry Intermediate HoldCo., priced the notes at 6.75%. The senior notes are due in 2032 and will be guaranteed on an unsecured basis, meaning they are not backed by collateral.

“The Company expects to use the net proceeds from the offering to repay a portion of the amounts outstanding under CCM’s mortgage servicing rights line of credit, to pay related fees and expenses and for general corporate purposes,” CCM said in a statement.

In a recent interview with HousingWire, CEO and founder Ron Leonhardt said CCM considered, but ultimately passed on, high-yield offerings in 2021 and 2022 due to unfavorable pricing.

In September, the company announced the issuance of $900 million in debt at 6.50%, due in 2030.

“Our inaugural offering was over seven times oversubscribed; we had approximately 200 institutional investors. We did extremely well. Investors believe in the story and the financial makeup of the company,” Leonhardt said.

Other mortgage companies that have issued debt recently include UWM Holdings Corp., which closed a $1 billion senior notes issuance in early September. Companies such as Pennymac, Rocket Companies, Better Home & Finance Holding Co., Rithm Capital and Planet Financial Group have made similar moves.

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Crosscountry Mortgage Issues $600m In Debt For Msr Repayments

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