Finance of America Announces Exchange Offer Support Agreement with Unsecured Corporate Noteholders
25 Juni 2024 - 1:00PM
Business Wire
Finance of America Companies Inc. (“Finance of America” or the
“Company”) (NYSE: FOA), a leading provider of home equity-based
financing solutions for a modern retirement, today announced that
certain of its direct and indirect subsidiaries, including Finance
of America Funding LLC (“FOA Funding”), entered into an agreement
(the “Exchange Offer Support Agreement”) with certain holders
representing approximately 71.1% of FOA Funding’s outstanding
unsecured Senior Notes due 2025 (the “2025 Unsecured Notes”) to
support and participate in an exchange of any and all of the
outstanding 2025 Unsecured Notes for (i) up to $200 million
aggregate principal amount of Senior Secured First Lien notes due
2026, subject to certain extensions, and (ii) up to $150 million
aggregate principal amount of Exchangeable Senior First Lien Notes
due 2029. More information about the Exchange Offer Support
Agreement is available in a Current Report on Form 8-K filed by
Finance of America on June 25, 2024, with the Securities and
Exchange Commission.
Additionally, on June 24, 2024, the Libman Parties (as defined
in the indenture governing the 2025 Unsecured Notes) notified the
Company that they also intend to participate in the foregoing
transactions. As a result, the total amount of holders of 2025
Unsecured Notes intending to participate in such transactions
represent ownership of approximately 93.1% of the aggregate
principal amount of the 2025 Unsecured Notes.
The announcement marks another significant step to improve the
Company’s capital structure and achieve sustainable growth and
profitability.
Simpson Thacher & Bartlett LLP served as counsel and
Houlihan Lokey Capital, Inc. served as financial advisor to the
Company and its subsidiaries.
This communication is not intended to and does not constitute an
offer to sell, buy or subscribe for any securities or otherwise,
nor shall there be any sale, issuance, or transfer of securities in
any jurisdiction in contravention of applicable law. In particular,
this communication is not an offer of securities for sale into the
United States. No offer of securities shall be made in the United
States absent registration under the Securities Act of 1933, as
amended, or pursuant to an exemption from, or in a transaction not
subject to, such registration requirements.
About Finance of America
Finance of America (NYSE: FOA) is a modern retirement solutions
platform that provides customers with access to an innovative range
of retirement offerings centered on the home. In addition, FOA
offers capital markets and portfolio management capabilities
primarily to optimize the distribution of its originated loans to
investors. FOA is headquartered in Plano, Texas.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are not historical facts or statements of current
conditions, but instead represent only the Company’s beliefs
regarding future events, many of which, by their nature, are
inherently uncertain and outside of the Company’s control. These
statements include, but are not limited to, statements related to
the transactions described above, including the Company’s ability
to complete the transactions described above on commercially
acceptable terms, on the timeline contemplated or at all, the
Company’s ability to realize the intended benefits of the
transactions described above. In some cases, you can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “projects,” “predicts,” “intends,”
“plans,” “estimates,” “budgets,” “forecasts,” “anticipates,” or the
negative version of these words or other comparable words. The
Company cautions readers not to place undue reliance upon any
forward-looking statements, which are current only as of the date
of this release. The Company does not undertake or accept any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or any change in events, conditions, or
circumstances on which any such statement is based, except as
required by law. All subsequent written and oral forward-looking
statements concerning the Company or other matters and attributable
to the Company or any person acting on its behalf are expressly
qualified in their entirety by the cautionary statements set forth
in this paragraph. A number of important factors exist that could
cause future results to differ materially from historical
performance and these forward-looking statements. New factors
emerge from time to time, and it is not possible for the Company’s
management to predict all such factors or to assess the effect of
each such new factor on its business. Although the Company believes
that the assumptions underlying the forward-looking statements
contained herein are reasonable, any of the assumptions could be
inaccurate, and any of these statements included herein may prove
to be inaccurate. Given the significant uncertainties inherent in
the forward-looking statements included herein, the inclusion of
such information should not be regarded as a representation by the
Company or any other person that the results or conditions
described in such statements, or the Company’s objectives and plans
will be achieved. Please refer to “Risk Factors” included in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, filed with the SEC on March 15, 2024, for further
information on these and other risk factors affecting the Company,
as such factors may be amended and updated from time to time in the
Company’s subsequent periodic filings with the SEC, which are
accessible on the SEC’s website at www.sec.gov.
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For Finance of America Media: pr@financeofamerica.com For
Finance of America Investor Relations: ir@financeofamerica.com
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