Caliber Home Loans, a residential mortgage producer and servicer, announced terms for its IPO on Wednesday.
The Coppell, TX-based company plans to raise $345 million by offering 23 million shares (100% insider) at a price range of $14 to $16. The company is also concurrently offering 2 million shares of Series A Mandatory Convertible Preferred Stock at $50 per share with a 3-year convert maturity. At the midpoint of the proposed range, Caliber Home Loans would command a fully diluted market value of $1.8 billion.
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.
Caliber Home Loans 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, Barclays, BofA Securities, Citi, UBS Investment Bank, and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of October 26, 2020.
