WESTLAKE VILLAGE, Calif. - Velocity Financial, Inc. (NYSE: NYSE:VEL), a company specializing in business purpose loans, has announced the issuance of $75M in senior secured notes by its wholly-owned subsidiary, Velocity Commercial Capital, LLC. The notes, which settled on Monday, carry an interest rate of 9.875% per annum and are due to mature on February 15, 2029.
The firm stated that the proceeds from the notes would be utilized to generate new investments and for various corporate and working capital needs. The interest on these notes is scheduled to be paid semi-annually, with the first payment due on May 15, 2024.
Piper Sandler & Co. served as the placement agent for the offering. Mark R. Szczepaniak, CFO of Velocity Financial, commented on the issuance, highlighting the company's strong financial performance and the growth of its investment portfolio. Szczepaniak expressed confidence that the capital raised would contribute positively to the company's earnings and support its goal of expanding its portfolio to $5B by 2025. He also noted the flexibility of the notes structure, which allows for the issuance of additional series and aids in creating a staggered corporate debt maturity schedule.
It is important to note that the notes have not been registered under the United States Securities Act of 1933, nor any state securities laws, and will not be available for sale in the United States without registration or an exemption from registration requirements. The company clarified that this press release is not an offer to sell or a solicitation of an offer to buy any securities.
The press release includes forward-looking statements, which are based on current expectations and projections about future events. However, such statements are not guarantees of future performance and are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated.
This news article is based on a press release statement from Velocity Financial, Inc. and does not constitute an endorsement of the company or its securities. The information provided is for general informational purposes only.
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