Finance of America Funding LLC announced a nearly 98% participation rate in its exchange offer for the outstanding 7.875% Senior Notes due 2025. Holders of $342,622,000 aggregate principal amount, representing 97.892% of the notes, elected to participate by the original expiration time of October 25, 2024.
The exchange offer involves exchanging the existing notes for up to $200.0 million of 7.875% Senior Secured Notes due 2026, up to $150.0 million of 10.000% Exchangeable Senior Secured Notes due 2029, and a 0.25% cash fee. The amortization payment for the New Senior Secured Notes was modified to $0.23 per $1.00 initial principal amount.
CEO Graham A. Fleming stated that this transaction positions the company for enhanced financial flexibility and an improved capital structure, aligning cash flows with debt obligations. The settlement of the Exchange Offer and Consent Solicitation is expected on October 31, 2024.
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