PennyMac Financial Services, Inc. Announces Commencement Of Secondary Public Offering By Selling Stockholder

PennyMac Financial Services, Inc. (NYSE: PFSI) (“PennyMac Financial”) announced today the commencement of an underwritten secondary public offering of 5,554,545 shares of its Class A common stock by selling stockholder Fidelity Investments Charitable Gift Fund. Citigroup Global Markets, Inc. is acting as the sole book-running manager and sole underwriter for the offering. Citigroup Global Markets, Inc. will have the option to purchase up to an additional 555,455 shares of Class A common stock from the selling stockholder. PennyMac Financial will not sell any shares in the offering and the selling stockholder will receive all of the proceeds from the offering.

Fidelity Capital Markets, or FCM, acted as an advisor to Fidelity Investments Charitable Gift Fund and BlackRock Inc. in connection with the transaction, for which they did not receive any compensation or items of value. An affiliate of BlackRock Inc. is a stockholder of PennyMac Financial and is not selling any shares in the offering. However, FCM does intend to act as a retail selling group member in the offering and will receive compensation in the form of a sales concession on shares it distributes while acting in that capacity. FCM is a division of National Financial Services LLC.

The offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission (the “SEC”). A prospectus supplement related specifically to the offering is being filed with the SEC. Copies of the prospectus supplement and the base prospectus relating to these shares will be available on the SEC’s website at http://www.sec.gov and may be obtained from Citigroup Global Markets, Inc. by mail at Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (tel: 800-831-9146) or by email at BATProspectusdept@citi.com.

This press release is neither an offer to sell nor a solicitation of an offer to buy any shares of Class A common stock or any other security of PennyMac Financial. There shall be no sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About PennyMac Financial Services, Inc.

PennyMac Financial Services, Inc. is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans and the management of investments related to the U.S. residential mortgage market. PennyMac Financial Services, Inc. is headquartered in Moorpark, California. The Company trades on the New York Stock Exchange under the symbol "PFSI." Additional information about the Company is available at www.IR.PennyMacFinancial.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections and assumptions with respect to, among other things, the Company’s financial results, future operations, business plans and investment strategies, as well as industry and market conditions, all of which are subject to change. Words like “believe,” “expect,” “anticipate,” “promise,” “plan,” and other expressions or words of similar meanings, as well as future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” are generally intended to identify forward-looking statements. Actual results and operations for any future period may vary materially from those projected herein and from past results discussed herein. Factors which could cause actual results to differ materially from historical results or those anticipated include, but are not limited to: changes in federal, state and local laws and regulations applicable to the highly regulated industry in which we operate; lawsuits or governmental actions if we do not comply with the laws and regulations applicable to our businesses; the creation of the Consumer Financial Protection Bureau, or CFPB, and enforcement of its rules; changes in existing U.S. government-sponsored entities, their current roles or their guarantees or guidelines; changes to government mortgage modification programs; the licensing and operational requirements of states and other jurisdictions applicable to our businesses, to which our bank competitors are not subject; foreclosure delays and changes in foreclosure practices; certain banking regulations that may limit our business activities; changes in macroeconomic and U.S. residential real estate market conditions; difficulties in growing loan production volume; changes in prevailing interest rates; increases in loan delinquencies and defaults; our reliance on PennyMac Mortgage Investment Trust as a significant source of financing for, and revenue related to, our correspondent lending business; availability of required additional capital and liquidity to support business growth; our obligation to indemnify third-party purchasers or repurchase loans that we originate, acquire or assist in with fulfillment; our obligation to indemnify advised entities or investment funds to meet certain criteria or characteristics or under other circumstances; decreases in the historical returns on the assets that we select and manage for our clients, and our resulting management and incentive fees; regulation applicable to our investment management segment; conflicts of interest in allocating our services and investment opportunities among ourselves and our advised entities; the potential damage to our reputation and adverse impact to our business resulting from ongoing negative publicity; and our rapid growth. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks described above, as well as those more fully discussed in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, and the statements made in this press release are current as of the date of this release only.

Copyright Business Wire 2010

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