#United States #Detroit #Rocket Companies #Mr. Cooper Group #Nationstar Mortgage

Rocket Companies Extends Exchange Offers for Nationstar Mortgage Holdings

Rocket Companies, Inc. (NYSE: RKT) based in Detroit, known for its extensive fintech service offerings, including mortgage solutions and real estate transactions, recently made a significant announcement. The company has confirmed the extension of the expiration date for its previously announced exchange offers and consent solicitations. These offers pertain to Nationstar Mortgage Holdings Inc.'s senior notes: the 6.500% Senior Notes that are due in 2029, and the 7.125% Senior Notes due in 2032.

Details of the Extension

The expiration date has been moved from September 2, 2025, to September 30, 2025, specifically at 5:00 PM New York City time. This change is pertinent to a broader strategic initiative as it connects to Rocket Companies' acquisition plans regarding Mr. Cooper Group Inc. The total aggregate principal amount under consideration stands at $750 million for the 2029 Notes and $1 billion for the 2032 Notes, culminating in an overall potential exchange of up to $1.75 billion in new senior notes, referred to as the New Rocket Notes.

This extension indicates Rocket Companies’ commitment to ensuring a smooth transition regarding the pending acquisition of Mr. Cooper, which is anticipated to benefit both entities involved in the transaction. The Settlement Date for the Exchange Offers and Consent Solicitations is expected to occur on or before the second business day following the new expiration date.

Importance of the Exchange Offers

Participating holders of the Existing Notes can withdraw their tenders at any time prior to the new expiration date. However, it’s noteworthy that the consent related to those tenders cannot be unilaterally withdrawn afterward. The company had previously received substantial consent from the Early Tender Date on August 15, 2025, which allowed for the amendment of various restrictions and covenants associated with the existing Notes.

The new amendments aim to simplify several conditions following the anticipated closing of the acquisition, removing the necessity of a Change of Control offer post-transaction and alleviating some restrictive covenants that could hinder operational flexibility. A supplemental indenture was executed with Nationstar and its trustee to bring these amendments into effect once the valid tenders are accepted.

Participation in the Exchange Offers

As of the extension announcement date, there was significant participation in the exchange offers. The firm received tenders for approximately 98.41% of the 2029 Notes and around 95.52% of the 2032 Notes. This level of commitment indicates strong confidence among the bondholders in Rocket's strategies and its future position post-acquisition.

Looking Ahead

The announcement has grabbed the attention of not only bondholders but the financial market as a whole, signaling Rocket Companies' ongoing transformation and growth strategy. The potential completion of the acquisition of Mr. Cooper is seen as transformative, potentially leading to greater efficiencies and enhanced service offerings in the mortgage and real estate space.

Overall, the extension underscores the significance of the proposed exchange and the ongoing reconfiguration of both Rocket Companies and Nationstar within the broader financial services landscape.

In conclusion, Rocket Companies continues to navigate challenging yet promising waters in the financial sector, using strategic moves like the extension of exchange offers to bolster its position in a competitive marketplace. Stakeholders remain alert as the new schedule unfolds and look forward to the eventual realization of the opportunities that lie ahead with the completion of the Mr. Cooper Acquisition.