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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2023

Long-Term Debt.

Summary of term notes issued


					Annual interest rate				Maturity date
Issuance date		Principal balance			Index		Spread		Stated		Optional extension (1)
		(in thousands)
Term Notes:
February 28, 2018		$	650,000		One-month LIBOR⁽²⁾		3.85%		2/25/2025		(3)
August 10, 2018			650,000		One-month LIBOR⁽²⁾		2.65%		8/25/2023		8/25/2025⁽⁴⁾
June 3, 2022			500,000		SOFR		4.25%		5/25/2027		5/25/2029
Term Loans:
February 28, 2023			680,000		SOFR		3.00%		2/25/2028		2/25/2029
		$	2,480,000

(1)	The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of the Term Notes or Term Loans as specified in the respective agreements.

(2)	London Interbank Offered Rate (“LIBOR”). Effective July 1, 2023, the one-month LIBOR index was replaced with SOFR.

(3)	Stated maturity date reflects the exercise by the Company of its option to extend the maturity of this issuance.

(4)	In July 2023, the Company exercised its option to extend the maturity for two years.

Freddie Mac MSR Note Payable

Summary of note payable


		Quarter ended June 30,						Six months ended June 30,
		2023			2022			2023			2022

		(dollars in thousands)
Average balance		$	2,480,000		$	1,426,373		$	2,287,099		$	1,363,536
Weighted average interest rate (1)			8.57%			3.69%			8.19%			3.34%
Total interest expense		$	53,817		$	13,656		$	94,595		$	23,565

(1)	Excludes the effect of amortization of debt issuance costs totaling $809,000 and $548,000 for the quarters ended June 30, 2023 and 2022, respectively, and $1.7 million and $1.0 million for the six months ended June 30, 2023 and 2022, respectively.


								June 30,			December 31,
								2023			2022

								(dollars in thousands)
Carrying value:
Unpaid principal balance:
Term Notes and Term Loans								$	2,480,000		$	1,800,000
Freddie Mac MSR Note Payable									—			150,000
									2,480,000			1,950,000
Unamortized debt issuance costs									(7,274)			(7,354)
								$	2,472,726		$	1,942,646
Weighted average interest rate									8.51%			7.46%
Assets pledged to secure notes payable (1):
Servicing advances								$	288,082		$	381,379
Mortgage servicing rights								$	6,457,553		$	5,897,613
Deposits								$	31,561		$	12,277

(1)

Beneficial interests in the Ginnie Mae MSRs, servicing advances and deposits together serve as the collateral backing servicing asset facilities that are included in Assets sold under agreements to repurchase and the Term Notes and Term Loans included in Notes payable secured by mortgage servicing assets.

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 interest.

Summary of unsecured notes payable


		Quarter ended June 30,						Six months ended June 30,
		2023			2022			2023			2022

		(dollars in thousands)
Average balance		$	1,800,000		$	1,800,000		$	1,800,000		$	1,800,000
Weighted average interest rate (1)			5.07%			5.07%			5.07%			5.07%
Total interest expense		$	23,688		$	23,688		$	47,116		$	47,116

(1)	Excludes the effect of amortization of debt issuance costs of $923,000 for each of the quarters ended June 30, 2023 and 2022, and $1.8 million for each of the six months ended June 30, 2023 and 2022.


								June 30,			December 31,
								2023			2022

								(dollars in thousands)
Carrying value:
Unpaid principal balance								$	1,800,000		$	1,800,000
Unamortized debt issuance costs and premiums, net									(18,244)			(20,080)
								$	1,781,756		$	1,779,920
Weighted average interest rate									5.07%			5.07%

Summary of maturities of Long-Term Debt

Maturities of long-term debt (based on stated maturity dates) are as follows:


		Twelve months ended June 30,
		2024			2025			2026			2027			2028			Thereafter			Total

		(in thousands)
Notes payable secured by mortgage servicing assets ⁽¹⁾		$	650,000		$	650,000		$	—		$	500,000		$	680,000		$	—		$	2,480,000
Unsecured senior notes			—			—			650,000			—			—			1,150,000			1,800,000
Total		$	650,000		$	650,000		$	650,000		$	500,000		$	680,000		$	1,150,000		$	4,280,000

(1)	The Term Notes and Term Loans’ indentures provide the Company with the option to extend the maturity of the Term Notes and Term Loans as specified in the respective agreements.

Summary of obligations under capital lease


		Period ended June 30, 2022
		Quarter			Six months

		(dollars in thousands)
Average balance		$	523		$	1,695
Weighted average interest rate			2.49%			2.18%
Total interest expense		$	5		$	20
Maximum daily amount outstanding		$	1,396		$	3,489