Finance of America Companies Completes Exchange Offer and Consent Solicitation Transactions

On October 31, 2024, Finance of America Funding LLC, a subsidiary of Finance of America Companies Inc., finalized its exchange offer and consent solicitation transactions. In these transactions, Finance of America Funding exchanged $342,622,000 of its existing 7.875% Senior Notes due 2025 for the issuance of $195,783,947 of new 7.875% Senior Secured Notes due 2026, $146,793,000 of new 10.000% Exchangeable Senior Secured Notes due 2029, and cash consideration of $856,555.

Additionally, Finance of America Funding, along with guarantors of the 2025 Unsecured Notes, entered into a First Supplemental Indenture to eliminate certain restrictive covenants and provisions contained in the 2025 Unsecured Notes and the Existing Indenture. The New Senior Secured Notes issued pursuant to an indenture mature on November 30, 2026, with an option to extend the maturity date until November 30, 2027.

The New Exchangeable Notes issued by Finance of America Funding will mature on November 30, 2029, and bear cash interest of 10.000% per annum payable semi-annually in arrears. Holders of the New Exchangeable Notes have the right to exchange them for shares of the company’s Class A common stock.

The Collateral and Security Documents detail the security arrangements for the New Secured Notes. Finance of America Companies also entered into a Registration Rights Agreement with respect to the Common Stock deliverable upon exchange of the New Exchangeable Notes.

The completion of these transactions signifies significant financial restructurings for Finance of America Companies Inc., ensuring a solid financial foundation and strategic positioning for the future. Investors and stakeholders will now be able to leverage the benefits of these transactions as outlined in the 8-K filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Finance of America Companies’s 8K filing here.

Finance of America Companies Company Profile

Finance of America Companies Inc a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners.