Caliber Home Loans, the Coppell-based mortgage company, is seeking to raise up to $200 million in an initial stock offering.

The fast-growing home loan firm filed Friday with the U.S. Securities and Exchange Commission for its first public securities sale. Record-low interest rates are fueling a home buying and refinancing boom, leading privately owned mortgage companies to capitalize on Wall Street.

Home mortgage originations are forecast to hit $3.9 trillion this year – up from about $2.2 trillion in 2019. More than $2.4 trillion of this year’s home lending volume is homeowners refinancing their property at lower mortgage rates.

Caliber Home Loans is owned by an affiliate of Dallas private equity investor Lone Star Funds, which will maintain more than 50% of the company’s stock after the public offering. The company lists its current total stockholders’ equity at more than $1 billion.

Caliber – which is moving its headquarters to the Cypress Waters development near LBJ Freeway and Belt Line Road – describes itself as the country’s second-largest independent mortgage originator. It has more than 550,000 customers for which it makes and services home loans. Its mortgage originations totaled $61 billion last year.

Through the first half of this year, Caliber recorded $275 million in profit for a 45% return on equity, according to its SEC filing. The company said its 2020 revenue of $1.13 billion through six months is just below its full-year revenue of $1.2 billion last year.

Caliber, formed in 2013 when Lone Star Funds combined separate mortgage operations, has nearly 6,000 employees today. The company filed plans this summer to move its corporate headquarters from Coppell to the hugely successful Cypress Waters development at 3401 Olympus Boulevard.

The company is taking about 80,000 square feet on two floors of the new building, according to filings with

Caliber Home Loans, a residential mortgage producer and servicer, filed on Friday with the SEC to raise up to $100 million in an initial public offering. All shares in the offering will be sold by existing shareholders. The company plans to raise an additional $100 million through a separate public offering of its Mandatory Convertible Preferred Stock.

With a diversified, customer-centric platform, Caliber Home Loans focuses primarily on the purchase market and is the second largest independent mortgage originator based on purchase volume since 2016. In the FY 2019, the company was the only mortgage provider to maintain a top 10 market position across all the retail, wholesale, and correspondent channels. 

The Coppell, TX-based company was founded in 1963 and booked $1.9 billion in revenue for the 12 months ended June 30, 2020. It plans to list on the NYSE under the symbol HOMS. Credit Suisse, Goldman Sachs and Barclays are joint bookrunners on the deal. No pricing terms were disclosed.

The article Mortgage provider Caliber Home Loans files for a $100 million IPO originally appeared on IPO investment manager Renaissance Capital’s web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Source Article