Velocity Financial, Inc. Announces Issuance of $215 Million of Senior Secured Notes
The Notes settled on March 15, 2022, and the net proceeds were used to pay off the Company’s existing term loan facility, and the remaining proceeds will be used for general corporate and other working capital purposes, including to originate new loan investments.
Piper Sandler & Co. acted as placement agent for the offering.
Mark R. Szczepaniak, CFO, stated, “This transaction marks the successful refinancing of our corporate debt, made possible by Velocity’s strong operational performance and balance sheet. This transaction significantly lowers the interest rate on our corporate debt, while also providing additional capital we expect to deploy into attractive loan investments to fuel Velocity’s continued growth. Moreover, we have converted most of our long-term debt to fixed rates, helping to minimize future interest rate risk.”
Mr. Szczepaniak continued, “We’d like to thank the team at Piper Sandler for leading another successful transaction and appreciate the participation of numerous investors in this new financing.”
The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in
Forward-Looking Statements
Some of the statements contained in this press release may 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 and 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 securitization 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-K filed with the SEC on May 10, 2021, 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.
About Velocity Financial, Inc.
Based in
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Investors and Media:
Chris Oltmann
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Source: Velocity Financial, Inc.