Rocket pushes back debt exchange deadline amid Mr. Cooper deal

Rocket Companies has extended the deadline for investors to exchange debt issued by a Mr. Cooper Group subsidiary for the lender’s own paper — a step tied to its $9.4 billion acquisition of the competitor.

The deadline moved from Sept. 2 to Sept. 30, still leaving enough time for the deal to close in the fourth quarter as planned. Rocket also signaled it may extend the deadline again until the acquisition and settlement align.

In a statement, the company said it “anticipates further extending the Expiration Date until such time that the Mr. Cooper Acquisition may be consummated substantially concurrently with the Settlement Date.” 

The exchange offer covers $750 million in senior notes due in 2029 at 6.5% and $1 billion in senior notes due in 2032 at 7.125%. There are also notes due in 2030 paying 5.125% and others due in 2031 paying 5.75%. The debt was first issued by Nationstar Mortgage Holdings. 

Participation has been high, with 98.4% of 2029 notes, 88.3% of 2030 notes, 89.3% of 2031 notes and 95.5% of 2032 notes already tendered and not withdrawn. 

Recently, Rocket refinanced debt tied to its Mr. Cooper acquisition. 

Rocket priced $4 billion in senior unsecured notes — $2 billion due in 2030 at 6.125% and $2 billion due in 2033 at 6.375%. The proceeds will primarily redeem the notes of Nationstar, a Mr. Cooper subsidiary, that mature between 2026 and 2028. Fitch Ratings assigned the notes a BBB- rating.

The Federal Housing Finance Agency (FHFA) approved the merger in late August, imposing a 20% cap on Fannie Mae and Freddie Mac servicing exposure for the combined company.

In a statement given to HousingWire, a Rocket Companies spokesperson said, “We are pleased to have cleared FHFA’s review in our pending acquisition of Mr. Cooper, which we expect to close in the fourth quarter.“