Rocket will use the offering, which is split between notes due in 2031 and 2034, to pay debts, including Senior Notes due this year.
Rocket Companies has debt, and they’re looking to use Senior Notes to repay it.
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 debts, including 2.875 percent Senior Notes due this year.
The $1.2 billion is evenly split between the aggregate principal amount of senior notes due in 2031 and 2034, Rocket Companies 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 will likely help the company maintain liquidity, HousingWire and several other publications 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 coming-soon listings partnership with Compass, advancements in artificial intelligence integration across Rocket’s companies and a strong end-to-end transaction pipeline have made the company Teflon — immovable despite continued mortgage and home sales volatility.
Rocket has added $2 billion per month in loan volume in the past two quarters, and serves 9.4 million homeowners, the most in the industry, with unpaid principal totaling $2.1 trillion.
“We delivered strong performance in a volatile market. We are using AI, data and distribution to create opportunity instead of waiting for the market to hand it to us,” he said. “Rocket is no longer the same company that it was 3 years ago. The shape of our business has not only changed, it has fundamentally evolved.”
