Black Knight, Inc. - BKI STOCK NEWS

Black Knight, Inc. (NYSE:BKI) has enhanced its ValuEdge AVM Cascade by integrating the CA Value AVM, developed by its subsidiary, Collateral Analytics. This automated valuation model cascade provides faster, more accurate residential property value estimations, improving hit rates and minimizing outliers. The CA Value AVM, used by various financial institutions, utilizes neighborhood-specific comparable selections for precise valuations. The updated cascade caters to all lending stages, supported by comprehensive public records and validation from AVMetrics.

Black Knight, Inc. (NYSE:BKI) announced the pricing of $1 billion in 3.625% Senior Unsecured Notes due September 1, 2028, up from a previously announced $750 million. The offering will close on August 26, 2020, providing funding for the acquisition of Optimal Blue Holdings, LLC. The notes yield 3.625% and will pay interest semi-annually. The offering is not contingent upon the acquisition but includes a mandatory redemption clause if the acquisition does not close. The proceeds from this issuance will also be used for debt repayment.

Black Knight (NYSE: BKI) announced a proposed offering of $750 million Senior Unsecured Notes due 2028. The notes, intended for qualified institutional buyers, will be guaranteed by Black Knight and its subsidiaries. The proceeds will finance part of the acquisition of Optimal Blue Holdings, including debt repayment and related expenses. While the offering is not contingent on the acquisition's completion, it features a mandatory redemption clause if the acquisition fails. The offering has not been registered under the Securities Act, limiting its sale.

Black Knight (BKI) reported its Q2 2020 results, revealing a 1% revenue decrease to $293.1 million compared to $294.9 million in the prior year. Net earnings rose 20% to $39.1 million, with a diluted EPS of $0.26, an 18% increase year-over-year. Adjusted net earnings climbed 7% to $78.3 million. The CEO highlighted the company’s resilience amid the COVID-19 pandemic, emphasizing a strong operational foundation. Additionally, Black Knight's acquisition of Optimal Blue is expected to enhance its product offerings and strengthen market position.

Black Knight, Inc. (NYSE:BKI) released its Mortgage Monitor Report, highlighting significant impacts of record-low 30-year interest rates on home affordability and refinancing incentives. As of mid-July, mortgage payments for the average-priced home require 19.8% of median income, a reduction from 25% during 1995-2003. Homebuyers' purchasing power increased by 10% year-over-year, allowing them to afford $32,000 more while keeping monthly payments stable. July saw a 12% month-over-month rise in purchase locks and an overall rise in refinance candidates to 15.6 million, representing significant market activity.

GTCR has signed a definitive agreement to sell Optimal Blue to Black Knight for an enterprise value of $1.8 billion in cash. Optimal Blue is a leader in the residential mortgage industry's digital marketplace, connecting about 3,500 lenders with 185 investors and facilitating approximately $2 trillion in transactions annually. Under GTCR's ownership since 2016, the company has undergone a strategic transformation, enhancing its capabilities and expanding its client base. The transaction is expected to close in the third quarter, pending regulatory approval.

Black Knight (NYSE:BKI) released its June 2020 mortgage performance statistics, indicating a total U.S. loan delinquency rate of 7.59%. This shows a 2.25% month-over-month improvement but a 103.55% increase year-over-year. Foreclosure pre-sale inventory decreased by 4.21% month-over-month to 0.36%, with foreclosure starts at 5,900, a 15.69% rise month-over-month, but down 85.29% from the previous year. Serious delinquency rates and properties 90+ days past due have surged, indicating ongoing stress in the mortgage market.

Black Knight, Inc. (NYSE:BKI) will release its second quarter 2020 earnings on August 10, 2020, before market open, followed by a conference call at 8:30 a.m. Eastern Time. Interested parties can join via Black Knight's Investor Relations site or by phone. CEO Anthony Jabbour and CFO Kirk Larsen will also participate in the Wells Fargo Virtual Technology Services Conference on August 11, 2020. The company is recognized for its software, data, and analytics solutions in the mortgage and capital markets sectors.

On July 20, 2020, Black Knight (NYSE: BKI) announced a partnership with Boston National Title, which will implement Black Knight's Expedite suite for electronic signatures and document fulfillment. This collaboration aims to enhance Boston National's digital title and settlement processes, especially amid the COVID-19 pandemic. Expedite's features will simplify workflows, allowing secure online collaboration for lenders, settlement agents, and consumers. Boston National Title also extended its contract for Black Knight's TitlePoint solution to improve property analysis.