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WESTLAKE VILLAGE, Calif. – Velocity Financial, Inc. (NYSE:), a specialist in business loans, announced that its wholly-owned subsidiary, Velocity Commercial Capital LLC, will issue $75 million in senior secured notes. The bond, which settled on Monday, has an annual interest rate of 9.875% and matures on February 15, 2029.
The company said proceeds from the notes will generate new investments and be utilized for various corporate capital and working capital needs. Interest on these notes will be paid semi-annually, with the first payment due on May 15, 2024.
Piper Sandler & Co. served as the placement agent for this item. Mark R. Szczepaniak, CFO of Velocity Financial, commented on the issuance, highlighting the company's strong financial performance and growth in its investment portfolio. Szczepaniak expressed confidence that the funds raised will contribute positively to the company's revenue and support its goal of expanding its portfolio to $5 billion by 2025. He also noted the flexibility of the bond structure, which allows for the issuance of additional series and subsidized financing. Shifting the redemption schedule of corporate bonds.
It is important to note that this note has not been registered under the United States Securities Act of 1933 or any state securities laws and may not be sold in the United States without registration or an exemption from registration requirements. The Company disclosed that this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
This press release contains forward-looking statements that 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 may cause actual results to differ materially from expectations.
This news article is based on a press release from Velocity Financial, Inc. and is not an endorsement of the company or its securities. The information provided is for general information purposes only.
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