Finance of America Companies Inc. (NYSE: FOA), a leading provider of home equity-based financing solutions, has announced significant changes to its previously announced Exchange Offer. The company has extended the offer's expiration date and modified the amortization payment terms for the New Senior Secured Notes, aiming to enhance its financial flexibility and capital structure. This strategic move is expected to align the company's cash flows with its debt obligations, positioning it for long-term success.

Unlocking Financial Agility: Finance of America's Debt Restructuring Initiatives

High Participation Rate in Exchange Offer

Finance of America has reported that holders of $342,622,000 aggregate principal amount (97.892%) of the outstanding 7.875% Senior Notes due 2025 have elected to participate in the company's Exchange Offer. This overwhelming response underscores the confidence that the company's noteholders have in its strategic direction and the potential benefits of the restructuring.

Extended Offer Expiration and Amortization Payment Modification

In addition to the high participation rate, FOA Funding has announced two key changes to the Exchange Offer and Consent Solicitation. Firstly, the expiration date has been extended to October 29, 2024, providing additional time for eligible holders to participate. Secondly, the amortization payment due on November 15, 2025, in respect of the New Senior Secured Notes, has been modified to be an amount equal to $0.23 per each $1.00 initial principal amount. These adjustments aim to further enhance the financial flexibility and alignment of the company's debt obligations with its cash flows.

Positioning for Improved Capital Structure and Financial Agility

Graham A. Fleming, Chief Executive Officer of Finance of America, expressed his enthusiasm for the high participation rate, stating, "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." The successful execution of the Exchange Offer and Consent Solicitation is expected to strengthen Finance of America's financial position and enable the company to navigate the evolving market landscape with greater agility.

Collaborative Approach with Noteholders

The company's collaborative approach with its noteholders has been instrumental in the success of the debt restructuring initiatives. Finance of America has worked closely with the ad hoc group of holders of the 2025 Unsecured Notes, leveraging the expertise and insights of its legal and financial advisors to craft a mutually beneficial solution. This partnership demonstrates the company's commitment to aligning the interests of all stakeholders and fostering a constructive dialogue throughout the process.

Enhancing Financial Flexibility and Optimizing Capital Structure

The modifications to the Exchange Offer and Consent Solicitation are designed to enhance Finance of America's financial flexibility and optimize its capital structure. By extending the offer expiration and adjusting the amortization payment terms, the company aims to provide eligible holders with more time and favorable conditions to participate, ultimately strengthening its balance sheet and positioning it for long-term growth and resilience.

Navigating the Evolving Retirement Financing Landscape

As a leading provider of home equity-based financing solutions for a modern retirement, Finance of America's strategic moves in the debt restructuring arena are crucial in navigating the evolving market dynamics. By proactively addressing its debt obligations and aligning its capital structure, the company is positioning itself to better serve its customers and capitalize on emerging opportunities in the retirement financing space.