Rocket will use the offering, which is split into notes due in 2031 and 2034, to pay down debt, including senior notes due this year.
Rocket Companies is in debt and is looking to use its senior notes to pay it off.
The company, which includes Rocket Mortgage, Rocket Money, Rocket Loans, Rocket Close, Rocket Title Insurance Company, Redfin and eight other real estate, technology and marketing subsidiaries, plans to issue $1.2 billion in senior notes to repay debt, including 2.875% senior notes due this year.
The $1.2 billion will be split evenly between the aggregate principal amount of senior notes maturing in 2031 and 2034, Rocket Companies said in a statement. This offering is exempt from registration under the Securities Act of 1933 and is being sold only to qualified institutional investors under Rule 144A and certain non-U.S. investors under Regulation S.
The plan is likely to help the company maintain liquidity, Housing Wire and several other publications explained on Tuesday.
The acquisition comes a month after Rocket’s first-quarter results, and Rocket CEO Varun Krishna called it a “wild ride.”
varun krishna
Krishna said the upcoming public partnership with Compass, advances in artificial intelligence integration across Rocket and a strong end-to-end deal pipeline have made Teflon resilient despite continued volatility in mortgages and home sales.
Rocket has grown its loan volume by $2 billion per month over the past two quarters, serving an industry-high 9.4 million homeowners and totaling $2.1 trillion in outstanding principal.
“We have achieved strong performance in a volatile market. Rather than waiting for the market to present opportunities, we are leveraging AI, data and distribution to create opportunities,” he said. “Rocket is no longer the same company we were three years ago. The shape of our business has not only changed, it has fundamentally evolved.”
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