Most but not all Rocket holders of the 5.125% and 5.75% notes that are respectively due in 2030 and 2031 met a Tuesday night deadline for tender offers and consent solicitations related to the Mr. Cooper acquisition, with roughly 10% of the offers outstanding.
This suggests the pending acquisition, which recently received a key conditional approval from the regulator of large government-related mortgage investors, will take a little longer to close.
Rocket Cos. is extending the date by which it would like the investors in some of its senior debt due in the next five or six years to enter agreements as a result of the outstanding offers.
Nearly $574.13 million of the notes due in 2030 were tendered and almost $535.77 million of the 2031 debt, according to D.F. King & Co., the depositary and information agent for the offers and consent solicitations.
Fannie Mae and Freddie Mac’s oversight agency approved the deal on the condition that each maintain “strict counterparty risk concentration limits at 20%” of the two government-sponsored enterprises’ servicing market and observe safety and soundness protocols.
Depending on the definition of servicing used, analysts estimate that on a pro forma basis Rocket and Mr. Cooper combined would have a share somewhere between 13% and somewhat below 20% on a pro forma basis.
Rocket plans to close the acquisition in the fourth quarter, according to a statement that a spokesperson distributed at the time of that conditional approval.
The new deadline gives the bondholders until the end of the third quarter, or Sept. 30, to agree to the consent solicitations and tender offers, and Rocket could further extend the expiration date if necessary.
Mr. Cooper has been prominent as a servicer while Rocket has been known as a leading nonbank mortgage lender and fintech. In addition to entering into the agreement to buy Mr. Cooper in March, Rocket closed on a deal to buy online real estate brokerage Redfin in July.
