Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2022

Summary of obligations under capital lease


	Quarter ended March 31,
	2022		2021

	(dollars in thousands)
Average balance	$	2,791	$	11,340
Weighted average interest rate		2.15%		2.13%
Total interest expense	$	15	$	59
Maximum daily amount outstanding	$	3,489	$	11,864


	March 31,		December 31,
	2022		2021

	(dollars in thousands)
Unpaid principal balance	$	1,396	$	3,489
Weighted average interest rate		2.43%		2.11%
Assets pledged to secure obligations under capital lease:
Capitalized software	$	3,922	$	4,546
Furniture, fixtures and equipment	$	3,775	$	4,116

Summary of term notes issued


Issuance date	Principal balance		Stated interest rate (1)	Stated maturity date (2)
	(in thousands)		(annual)
February 28, 2018 - (GMSR GT1)	$	650,000	2.85%	2/25/2023
August 10, 2018 - (GMSR GT2)		650,000	2.65%	8/25/2023
	$	1,300,000

(1)	Spread over one-month LIBOR.

(2)	The Term Notes’ indentures provide the Company with the option to extend the maturity of the Term Notes by two years after the stated maturity.

Summary of note payable


	Quarter ended March 31,
	2022		2021

	(dollars in thousands)
Average balance	$	1,300,000	$	1,300,000
Weighted average interest rate (1)		2.95%		2.88%
Total interest expense	$	9,909	$	9,888

(1)	Excludes the effect of amortization of debt issuance costs totaling $459,000 and $544,000 for the quarters ended March 31, 2022 and 2021, respectively.


	March 31,		December 31,
	2022		2021

	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	1,300,000	$	1,300,000
Unamortized debt issuance costs		(1,933)		(2,378)
	$	1,298,067	$	1,297,622
Weighted average interest rate		3.21%		2.84%
Assets pledged to secure notes payable (1) (2):
Servicing advances	$	230,395	$	232,107
Mortgage servicing rights	$	4,246,586	$	3,856,791
Deposits	$	36,106	$	36,632

(1)

Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits are pledged to the Issuer Trust and together serve as the collateral backing the VFN, GMSR Servicing Advance Notes and the Term Notes. The VFN financing and the GMSR Servicing Advance Notes are included in Assets sold under agreements to repurchase and the Term Notes are included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets.

(2)

Beneficial interests in the Fannie Mae MSRs are pledged to the PFSI Issuer Trust - FMSR and serve as the collateral backing the FMSR VFN and any outstanding FMSR Term Notes. The FMSR VFN financing is included in Assets sold under agreements to repurchase and the FMSR Term Note is included in Notes payable secured by mortgage servicing assets on the Company's consolidated balance sheets.

Summary of Unsecured Notes issued


Issuance date	Principal balance		Coupon interest rate	Maturity date	Optional redemption date (1)
	(in thousands)		(annual)
September 29, 2020	$	500,000	5.38%	October 15, 2025	October 15, 2022
October 19, 2020		150,000	5.38%	October 15, 2025	October 15, 2022
February 11, 2021		650,000	4.25%	February 15, 2029	February 15, 2024
September 16, 2021		500,000	5.75%	September 15, 2031	September 15, 2026
	$	1,800,000

(1)

Before the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at a price equal to 100% of the principal amount, plus accrued and unpaid interest and a make-whole premium or the Company may redeem up to 40% of the Unsecured Notes for that issuance with an amount equal to or less than the net proceeds from certain equity offerings at the redemption price set forth in the indenture, plus accrued and unpaid interest. On or after the optional redemption date, the Company may redeem some or all of the Unsecured Notes for that issuance at the redemption prices set forth in the indenture, plus accrued and unpaid interest.

Summary of unsecured notes payable


	Quarter ended March 31,
	2022		2021

	(dollars in thousands)
Average balance	$	1,800,000	$	1,003,889
Weighted average interest rate (1)		5.07%		4.91%
Total interest expense	$	23,428	$	12,670

(1)	Excludes the effect of amortization of debt issuance costs of $913,000 and $347,000 for the quarters ended March 31, 2022 and 2021, respectively.


	March 31,		December 31,
	2022		2021

	(dollars in thousands)
Carrying value:
Unpaid principal balance	$	1,800,000	$	1,800,000
Unamortized debt issuance costs and premiums, net		(22,868)		(23,781)
	$	1,777,132	$	1,776,219
Weighted average interest rate		5.07%		5.07%

Summary of maturities of Long-Term Debt


	Twelve months ended March 31,
	2023		2024		2025		2026		2027		Thereafter		Total

	(in thousands)
Obligations under capital lease	$	1,396	$	—	$	—	$	—	$	—	$	—	$	1,396
Notes payable secured by mortgage servicing assets		650,000		650,000		—		—		—		—		1,300,000
Unsecured senior notes		—		—		—		650,000		—		1,150,000		1,800,000
Total	$	651,396	$	650,000	$	—	$	650,000	$	—	$	1,150,000	$	3,101,396