Velocity Financial, Inc. Announces New $175 Million Term Loan Facility and $200 Million Warehouse Facility
February 09 2021 - 8:30AM
Business Wire
Velocity Financial, Inc. (NYSE: VEL), (“Velocity” or the
“Company”), a leading provider of small balance investor loans,
today announced that it has entered into a new $175 million, 5-year
term loan with a syndicate of lenders including funds managed by
Blackrock’s U.S. Private Capital group, Oaktree Capital Management,
L.P., and UBS O’Connor. The new facility has an initial $125
million funding as of the closing date, with an additional $50
million as a delayed draw feature. Proceeds of the new term loan
facility will be used to refinance existing debt and originate new
loans. In addition, the Company secured a new $200 million
non-mark-to-market warehouse facility with Barclays Bank, PLC to
finance new originations.
Mark R. Szczepaniak, CFO, stated, “We are excited to partner
with an impressive team of lenders that believe in our strategy and
support our growth plans. We intend to capitalize on the
considerable investment opportunities in today’s market through
increased loan production and market share growth to expand our
existing portfolio."
Mr. Szczepaniak continued, "We appreciate the leadership of
Jefferies Finance LLC, as Sole Lead Arranger and Sole Bookrunner on
the new term loan. The combination of these two new lending
facilities is a critical step in further solidifying our financing
for platform growth.”
About Velocity Financial,
Inc.
Based in Westlake Village, California, Velocity is a vertically
integrated real estate finance company that originates and manages
investor loans secured by 1-4 unit residential rental and small
commercial properties. Velocity originates loans nationwide across
an extensive network of independent mortgage brokers it has built
and refined over 15 years.
Forward-Looking
Statements
Some of the statements contained in this press release
constitute forward-looking statements within the meaning of the
federal securities laws. Forward-looking statements relate to
anticipated results, expectations, projections, plans and
strategies, anticipated events or trends, and similar expressions
concerning matters that are not historical facts. In some cases,
you can identify forward-looking statements by the use of
forward-looking terminology such as “may,” “will,” “expects,”
“intends,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “goal,” or “potential” or the negative of these words
and phrases or similar words or phrases that are predictions of or
indicate future events or trends and which do not relate solely to
historical matters. You can also identify forward-looking
statements by discussions of strategy, plans, or intentions.
The forward-looking statements contained in this press release
reflect our current views about future events, including our growth
plans and our ability to finance our platform. These future events,
as well as others, are subject to numerous known and unknown risks,
uncertainties, assumptions and changes in circumstances that may
cause actual results to differ significantly from those expressed
or contemplated in any forward-looking statement. While
forward-looking statements reflect our good faith projections,
assumptions and expectations, they are not guarantees of future
results. Furthermore, we disclaim any obligation to publicly update
or revise any forward-looking statement to reflect changes in
underlying assumptions or factors, new information, data or
methods, future events or other changes, except as required by
applicable law. Factors that could cause our results to differ
materially include, but are not limited to, (1) the continued
course and severity of the COVID-19 pandemic, and its direct and
indirect impacts, (2) general economic and real estate market
conditions, (3) regulatory and/or legislative changes, (4) our
customers' continued interest in loans and doing business with us,
(5) market conditions and investor interest in our contemplated
securitizations and (6) changes in federal government fiscal and
monetary policies.
Additional information relating to these and other factors that
could cause future results to differ materially from those
expressed or contemplated in any forward-looking statements can be
found in the section titled ‘‘Risk Factors” in our Form 10-Q filed
with the SEC on May 14, 2020, as well as other cautionary
statements we make in our current and periodic filings with the
SEC. Such filings are available publicly on our Investor Relations
web page at www.velfinance.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210209005218/en/
Chris Oltmann (818) 532-3708
Velocity Financial (NYSE:VEL)
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