Velocity Financial Completes Private Placement of Convertible Preferred Stock and Warrants
04.07.20
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Simpson Thacher represented Velocity Financial, Inc. (“Velocity”) in a private placement of convertible preferred stock and common stock purchase warrants to investment funds affiliated with Snow Phipps Group, LLC and an affiliate of a fund managed by Pacific Investment Management Company LLC. The offering raised aggregate proceeds of $45 million. Net proceeds from the offering will be used to pay down obligations under Velocity’s existing warehouse repurchase agreements and for general corporate purposes.
Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that primarily originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers it has built and refined over 15 years. Velocity is publicly traded on the New York Stock Exchange under the symbol “VEL.”
The Simpson Thacher team included Bill Brentani, Dan Webb and Ryan Coombs (Capital Markets); Eric Swedenburg, Matt Gabbard and Usman Liaqat (M&A); Kelli Schultz and Christine Paster (Public Company Advisory Practice); Tristan Brown and Alyssa Ohanian (Executive Compensation and Employee Benefits); and Joseph Tootle (Tax).