Finance of America Announces a Nearly 98% Participation Rate in the Exchange Offer and Consent Solicitation for Existing 2025 Unsecured Notes
Finance of America (NYSE: FOA) announces a 97.892% participation rate in its Exchange Offer for 7.875% Senior Notes due 2025, with holders of $342,622,000 aggregate principal amount electing to participate. The company has extended the Exchange Offer and Consent Solicitation deadline to October 29, 2024, and modified the amortization payment due November 15, 2025, to $0.23 per $1.00 initial principal amount of New Senior Secured Notes. The settlement is expected on October 31, 2024, subject to conditions.
Finance of America (NYSE: FOA) annuncia un tasso di partecipazione del 97,892% nella sua Offerta di Scambio per le Note Senior al 7,875% in scadenza nel 2025, con i detentori di un ammontare principale aggregato di $342.622.000 che hanno scelto di partecipare. L'azienda ha esteso la scadenza per l'Offerta di Scambio e il Consenso al 29 ottobre 2024 e ha modificato il pagamento di ammortamento in scadenza il 15 novembre 2025, portandolo a $0,23 per ogni $1,00 di ammontare principale iniziale delle Nuove Note Senior Garantite. Il regolamento è previsto per il 31 ottobre 2024, soggetto a condizioni.
Finance of America (NYSE: FOA) anuncia una tasa de participación del 97,892% en su Oferta de Intercambio de Notas Senior al 7,875% con vencimiento en 2025, con tenedores de un monto principal agregado de $342,622,000 optando por participar. La compañía ha extendido la fecha límite de la Oferta de Intercambio y Solicitud de Consentimiento hasta el 29 de octubre de 2024, y ha modificado el pago de amortización que debe realizarse el 15 de noviembre de 2025, a $0.23 por cada $1.00 de monto principal inicial de las Nuevas Notas Senior Garantizadas. Se espera que el acuerdo se realice el 31 de octubre de 2024, sujeto a condiciones.
Finance of America (NYSE: FOA)는 2025년 만기 7.875% 선순위 채권에 대한 교환 제안의 참여율이 97.892%에 달한다고 발표했으며, 총 342,622,000달러의 원금에 해당하는 보유자들이 참여를 선택했습니다. 회사는 교환 제안 및 동의 요청 마감일을 2024년 10월 29일로 연장하고, 신선순위 보장채권의 초기 원금 1달러당 0.23달러로 2025년 11월 15일 만기일에 지급해야 할 상환금을 수정했습니다. 정산은 2024년 10월 31일로 예정되며, 조건이 있습니다.
Finance of America (NYSE: FOA) annonce un taux de participation de 97,892 % dans son Offre d'Échange pour des Obligations Senior à 7,875 % arrivant à échéance en 2025, avec des détenteurs d'un montant principal agrégé de 342.622.000 $ choisissant de participer. L'entreprise a prolongé la date limite de l'Offre d'Échange et de la Demande de Consentement jusqu'au 29 octobre 2024 et a modifié le paiement d'amortissement dû le 15 novembre 2025, le fixant à 0,23 $ pour chaque 1,00 $ de montant principal initial des Nouvelles Obligations Senior Garanties. Le règlement est prévu pour le 31 octobre 2024, sous réserve de conditions.
Finance of America (NYSE: FOA) gibt eine Teilnahmequote von 97,892 % an seinem Austauschangebot für 7,875 % Senior Notes mit Fälligkeit im Jahr 2025 bekannt, wobei Inhaber eines Gesamtbetrags von 342.622.000 USD an Hauptbetrag teilnehmen möchten. Das Unternehmen hat die Frist für das Austauschangebot und die Einholung von Zustimmungen auf den 29. Oktober 2024 verlängert und die Amortisationszahlung, die am 15. November 2025 fällig wird, auf 0,23 USD pro 1,00 USD anfänglichem Hauptbetrags neuer, gesicherter Senior Notes modifiziert. Die Abwicklung wird für den 31. Oktober 2024 erwartet, vorbehaltlich bestimmter Bedingungen.
- High participation rate (97.892%) in Exchange Offer indicates strong creditor support
- Restructuring of debt obligations improves capital structure
- Enhanced financial flexibility through debt modification
- Need for debt restructuring indicates potential financial challenges
- Additional debt servicing costs with new amortization payment structure
Insights
The 98% participation rate in FOA's debt exchange offer represents a significant milestone in the company's financial restructuring efforts. The exchange of
Makes Certain Modifications to Exchange Offer
Additionally, FOA Funding hereby announces that (i) the Exchange Offer and the Consent Solicitation has been extended to expire at 5:00 P.M.,
Graham A. Fleming, Chief Executive Officer commented, “We are thrilled to have such a high participation rate in our Company’s Exchange Offer. This transaction positions the Company to benefit from enhanced financial flexibility and an improved capital structure, while aligning our cash flows with our debt obligations. We sincerely appreciate the continued partnership with our noteholders.”
FOA Funding expects to settle the Exchange Offer and Consent Solicitation on October 31, 2024, subject to the satisfaction or waiver of the conditions set forth in the Exchange Offer Memorandum and other than the modifications described above, the other terms and conditions of the Exchange Offer and Consent Solicitation remain unchanged.
Simpson Thacher & Bartlett LLP served as counsel and Houlihan Lokey Capital, Inc. served as financial advisor to the Company and its subsidiaries. Sidley Austin LLP served as counsel to the ad hoc group of holders of 2025 Unsecured Notes.
About the Exchange Offer
The “Exchange Offer and Consent Solicitation” is (i) an offer to exchange (the “Exchange Offer”) any and all of FOA Funding’s outstanding 2025 Unsecured Notes for (a) up to
Only eligible holders of 2025 Unsecured Notes may receive a copy of the Exchange Offer Memorandum and participate in the Exchange Offer and the Consent Solicitation. The Exchange and Information Agent is Kroll Issuer Services (US) (“Kroll” or the “Exchange Agent” and the “Information Agent”). Detailed instructions regarding how eligible holders of 2025 Unsecured Notes can tender (or withdraw) existing 2025 Unsecured Notes and deliver (or revoke) consents with respect to the Consent Solicitation are set forth in the Exchange Offer Memorandum. Questions concerning the Exchange Offer or Consent Solicitation or requests for additional copies of the Exchange Offer Memorandum or other related documents may be directed to Kroll at FinanceofAmerFDGExchange@is.kroll.com. Eligible holders of 2025 Unsecured Notes should also consult their broker, dealer, commercial bank, trust company or other institution for assistance concerning the Exchange Offer and the Consent Solicitation.
This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Exchange Offer is being made, and the New Secured Notes are being offered and issued, pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), only (i) in
About Finance of America
Finance of America (NYSE: FOA) is a leading provider of home equity-based financing solutions for a modern retirement. In addition, Finance of America offers capital markets and portfolio management capabilities primarily to optimize the distribution of its originated loans to investors. Finance of America is headquartered in
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the “safe harbor” provisions of the
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For Finance of America Media: pr@financeofamerica.com
For Finance of America Investor Relations: ir@financeofamerica.com
Source: Finance of America Companies Inc.
FAQ
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