Simpson Thacher represented Velocity Commercial Capital, LLC, as the issuer, and Velocity Financial, Inc., as the guarantor, in the issuance of $75 million in aggregate principal amount of 9.875% senior secured notes due 2029. The proceeds from the issuance will be used to originate new investments and for general corporate and other working capital purposes.
Velocity Financial, Inc., based in Westlake Village, California, is a vertically integrated real estate finance company founded in 2004 that originates and manages investor loans secured by residential rental and small commercial properties.
The Simpson Thacher team included Daniel Webb, Barry Lau, Christian Sheets and Madeline Cole (Capital Markets); Jennifer Levitt, Anita Wu and Diana Yen (Credit); Jon Pall (Collateral); Benjamin Wells and James Hahn (Investment Company Act); and Russell Light and Michael Mann (Tax).