Finance of America Companies Inc. announced it has fully paid off its outstanding higher-cost working capital facility and entered into a definitive agreement to repurchase Blackstone's entire equity stake for $80.3 million. This strategic move aims to strengthen the balance sheet and reduce interest expenses.
The company also announced a new convertible debt facility, which includes a $40 million unsecured convertible promissory note with a 0% coupon and a $20 million unsecured revolving working capital promissory note at 10% interest. This restructuring is projected to yield an annualized reduction of approximately $10 million in interest expense.
CEO Graham Fleming stated that these transactions mark a pivotal milestone in Finance of America’s strategic evolution, enhancing financial flexibility and independence. The repurchase transaction is subject to customary closing conditions and is anticipated to be consummated in the fourth quarter of 2025.
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