Loandepot, Inc. current report, 15 December 2023

Full document

Filing Summary

Business Context and Reporting Period

loanDepot, Inc. filed a Form 8-K dated December 15, 2023, reporting entry into a material credit agreement. The filing was signed on December 19, 2023. The transaction relates to financing secured by certain mortgage servicing rights associated with loans serviced for Fannie Mae.

Material Financing Terms and Liquidity

  • loanDepot FA Agency MSR, LLC, a wholly owned subsidiary of loanDepot.com, LLC, became the borrower.
  • loanDepot.com, LLC serves as guarantor, with Goldman Sachs Bank USA acting as administrative agent.
  • The agreement provides for a revolving line of credit of up to $500 million.
  • The facility is secured by certain mortgage servicing rights and other collateral identified in the Credit Agreement.
  • The Credit Agreement expires on January 28, 2025, unless terminated earlier under its terms.
  • The new agreement replaces the August 25, 2023 Existing Credit Agreement. Outstanding advances and obligations were assumed by the new borrower, and the Existing Credit Agreement was deemed terminated and paid in full.

Changes Versus the Prior Comparable Arrangement

The principal structural change is that loanDepot FA Agency MSR, LLC assumed the borrower role, while loanDepot.com, LLC became guarantor. The filing states that the financing’s primary purpose was to transfer the existing obligations and outstanding advances into the new arrangement and add the subsidiary as a party.

Guidance, Outlook, Risks, and Unusual Items

The filing does not provide revenue, profit, cash flow, margin, debt-balance, borrowing-base, interest-rate, covenant, or utilization information. It also does not provide management guidance or an operating outlook. Investors should review the full Credit Agreement for collateral requirements, covenants, events of default, termination provisions, borrowing conditions, and other financing terms.

Important Facts to Verify

  • Actual outstanding borrowings and available capacity under the $500 million revolving facility.
  • Applicable interest rates, fees, borrowing-base limitations, and collateral valuation requirements.
  • The specific mortgage servicing rights and other assets pledged as collateral.
  • Financial and operational covenants, including potential effects of covenant breaches or servicing-performance changes.
  • The treatment of the former facility’s outstanding advances and confirmation that it was fully terminated and paid in full.
  • The facility’s maturity and any extension, refinancing, or termination before January 28, 2025.