8-KMaterial AgreementsFinancial Events

Rocket Companies, Inc. 8-K Report, Material Agreement (Dec 4, 2020)

Filed December 4, 2020For Securities:RKT

Summary

Rocket Companies, Inc. (RKT) filed an 8-K on December 3, 2020, primarily to disclose an amendment to a material definitive agreement. Specifically, Quicken Loans, LLC, a wholly-owned subsidiary, entered into Amendment No. 11 to its Amended and Restated Master Repurchase Agreement with UBS AG. This amendment extends the maturity date of the agreement to December 2, 2021, and includes other technical changes. Importantly, the amendment did not alter the total funding capacity available to the Company. As of December 3, 2020, Rocket Companies maintained a total funding capacity of $29.30 billion across all its repurchase agreements, early funding facilities, credit lines, and buyout facilities. This represents an increase from previous periods, indicating a strengthening of the company's liquidity and financing flexibility.

Key Highlights

  • 1Amendment No. 11 to the Amended and Restated Master Repurchase Agreement with UBS AG was executed on December 3, 2020.
  • 2The amendment extends the maturity date of the Master Repurchase Agreement to December 2, 2021.
  • 3The amendment includes certain technical changes to the Master Repurchase Agreement.
  • 4The total funding capacity of Quicken Loans, LLC remains unchanged at $29.30 billion as of December 3, 2020.
  • 5This total funding capacity includes all master repurchase agreements, early funding facilities, unsecured lines of credit, MSR lines of credit, and early buy out facilities.
  • 6The total funding capacity of $29.30 billion is an increase from $27.50 billion as of September 30, 2020, and $19.13 billion as of December 31, 2019.

Frequently Asked Questions

The main purpose of this 8-K filing is to report an amendment to a material definitive agreement, specifically an amendment to the Master Repurchase Agreement between Quicken Loans, LLC and UBS AG.

The amendment extends the maturity date of the Master Repurchase Agreement to December 2, 2021. Crucially, the total funding capacity of Quicken Loans, LLC remains unchanged at $29.30 billion, indicating continued strong access to liquidity.

Yes, the filing indicates an increase in total funding capacity. As of December 3, 2020, the capacity was $29.30 billion, up from $27.50 billion at the end of the third quarter of 2020 and significantly up from $19.13 billion at the end of 2019. This suggests improved access to financing.

This filing incorporates the information from Item 1.01 into Item 2.03, which pertains to financial obligations. However, the amendment itself primarily extends an existing agreement and does not appear to create new or significantly altered financial obligations beyond the extension of maturity and technical changes.