What is the size of the tender and how does it compare to the total outstanding principal of the senior notes?

Tender size vs. total outstanding

The early‑tender announcement states that Rocket Companies is offering to tender about $1.5 billion of the 6.500 % senior notes due 2029 and the 7.125 % senior notes due 2032. The total outstanding principal on those two series of senior notes is roughly $1.9 billion. In other words, the tender represents approximately 78‑80 % of the total outstanding principal.

Trading implications

Because the tender covers a very large share of the outstanding issue, the market perceives a strong likelihood that the company will be able to retire a substantial portion of its debt at a discount (or at least at the prevailing market price). This typically creates upward pressure on the price of the remaining notes and can tighten spreads relative to comparable high‑grade corporate bonds. Traders should monitor the final tender results and any accompanying price‑adjustment mechanics: a large tender‑in can push the residual issue into a tighter supply‑demand environment, potentially narrowing yields on the remaining notes. In the short‑term, a long‑position in the remaining senior notes (or related ETFs) could be justified if the tender proceeds at a discount, while short‑position or put‑option strategies may be considered if the final tender price appears too generous, creating an artificial price floor that could be tested once the tender closes and the supply of notes is reduced. Keep an eye on the final consent and tender‑completion filings (expected within the next 10‑15 business days) to confirm the final tender size and the exact redemption price.