Rocket Companies upsizes bond deal to $1.5 billion

Rocket Companies has priced the issuance of $1.5 billion in senior notes in an oversubscribed transaction, with proceeds to refinance an existing term loan, the company announced Tuesday.

The Detroit-based parent of Rocket Mortgage priced $900 million in 6.125% senior notes due in 2031 and $600 million in 6.5% senior notes due in 2034. The aggregate principal amount was upsized from a previously announced $1.2 billion.

The offering is expected to close June 16, subject to customary closing conditions. The notes will be fully and unconditionally guaranteed on a senior unsecured basis by Rocket’s direct and indirect domestic subsidiaries that guarantee its existing senior notes.

The company plans to use proceeds to repay Rocket Mortgage’s 2.875% senior notes due in 2026 and to pay down other indebtedness across the platform. Any remaining proceeds will be used for general corporate purposes.

The transaction extends a portion of Rocket’s debt profile into the next decade and locks in fixed-rate funding. But it comes at higher rates due to the current macroeconomic environment.

The notes are being offered in a private placement to qualified institutional buyers under Rule 144A and to non-U.S. investors under Regulation S. They will not be registered under the Securities Act of 1933, and may not be offered or sold in the U.S. absent registration or an applicable exemption.

Rocket’s move comes amid rate volatility and compressed margins across the mortgage sector, where access to term funding and balance-sheet flexibility remain key advantages for large originators and servicers.

Companies that recently issued debt include Mr. Cooper Group — which was recently acquired by Rocket — as well as Pennymac Financial Services, loanDepot, and Rithm Capital.

This article was written by Flávia Furlan Nunes and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.