VEL

#2686
Velocity Financial, Inc. Common Stock
18.1 7 USD
+0.01%
Market Price
Settore: Finanziario
Base: USD
Valuta di Profitto: USD
Intervallo Giornaliero
18.13
18.22
Intervallo Annuale
16.65
21.40
Variazione giornaliera
+1.28%
Variazione Mensile
+0.94%
Variazione di 6 mesi
-1.30%
Variazione Annuale
-4.77%
Chiusura Precedente
17.9 4
Open
18.2 0
Minimo
18.1 3
Massimo
18.2 2
Volume
39
Apri il grafico completo

Financials

Panoramica Estratto Conto Statistiche Documents

2026

Current report, 26 Aug 2026
Velocity Financial, Inc. current report, 26 August 2026
8-K
Current report, Q3 FY2026
Velocity Financial, Inc. current report, Q3 FY2026
8-K
Current report, Q3 FY2026
Velocity Financial, Inc. current report, Q3 FY2026
8-K
Quarterly report, Q2 FY2026
Velocity Financial, Inc. quarterly report, Q2 FY2026
10-Q
Current report, Q2 FY2026
Velocity Financial, Inc. current report, Q2 FY2026
8-K
Current report, Q2 FY2026
Velocity Financial, Inc. current report, Q2 FY2026
8-K
Current report, Q2 FY2026
Velocity Financial, Inc. current report, Q2 FY2026
8-K
Quarterly report, Q1 FY2026
Velocity Financial, Inc. quarterly report, Q1 FY2026
10-Q
Current report, Q1 FY2026
Velocity Financial, Inc. current report, Q1 FY2026
8-K
Current report, Q1 FY2026
Velocity Financial, Inc. current report, Q1 FY2026
8-K

Velocity Financial, Inc. current report, Q2 FY2020

Full document

Business Context and Reporting Period

Company: Velocity Financial, Inc. (NYSE: VEL)
Filing Type: Form 8-K (Current Report)
Date of Report: April 5, 2020
Primary Event: Entry into a Material Definitive Agreement for a Private Placement (PIPE) and amendments to warehouse repurchase agreements.

Key Financial Metrics and Capital Structure

  • Capital Raised: $45.0 million in cash consideration.
  • Securities Issued:
    • 45,000 shares of Series A Convertible Preferred Stock.
    • Warrants to purchase 3,013,125 shares of Common Stock.
  • Debt Obligations: Following a $20.0 million prepayment, outstanding obligations under warehouse repurchase facilities are approximately $275 million.
  • Liquidity Requirements: The Company must maintain unrestricted cash and cash equivalents of at least $7.5 million.
  • Equity Estimates (Preliminary):
    • Members' equity as of December 31, 2019: Approximately $152 million.
    • Stockholders' equity as of March 31, 2020: Approximately $250 million.
  • Portfolio Size: Approximately $1.9 billion in held-for-investment loan portfolio.

Material Changes and Transaction Details

Private Placement Terms: The Company entered into a Securities Purchase Agreement with Snow Phipps Group, LLC and TOBI III SPE I LLC. The transaction includes:

  • Preferred Stock: Series A Preferred Stock has a liquidation preference starting at $2,000 per share, increasing to $3,000 per share by November 28, 2024. It ranks senior to Common Stock.
  • Conversion: Initial conversion price is approximately $3.85 per share. Holders may convert after stockholder approval; the Company may force conversion if the stock price exceeds 200% of the conversion price for 20 of 30 trading days after 18 months.
  • Warrants: Exercisable for 5 years. Two-thirds at $2.96/share; one-third at $4.94/share.
  • Repurchase Right: Holders may require the Company to repurchase shares at the liquidation preference starting 2.5 years after closing (no later than Nov 28, 2024). Failure to repurchase triggers a "Forced Sale" right.
  • Use of Proceeds: Pay down existing warehouse repurchase lenders and general corporate purposes.

Warehouse Facility Amendments: To facilitate the PIPE, the Company amended its warehouse repurchase agreements:

  • Interest rates increased by 25 basis points.
  • Maturity dates shortened to August 3, 2020 (subject to renewal).
  • Mandatory monthly payments of at least $3.0 million from May through August 3, 2020.
  • Immediate $20.0 million reduction in obligations at closing.

Guidance, Outlook, and Risks

Management Commentary: Management intends to consider originating or acquiring commercial mortgage loans during the economic crisis to supplement earnings from its existing fixed-rate portfolio. The amendments to warehouse facilities are designed to provide a more stabilized financing solution under current market conditions.

Risks and Contingencies: The filing highlights significant risks related to the COVID-19 pandemic, including recessionary trends, employment impacts, and restrictions on commerce. Specific risks include:

  • Increased mortgage default and prepayment rates.
  • Volatility in the commercial mortgage-backed securities (CMBS) market.
  • Liquidity constraints and availability of financing.
  • Geographic concentration of assets in states heavily impacted by the pandemic (e.g., NY, CA, NJ, FL).

Forward-Looking Statements: The Company disclaims any obligation to update forward-looking statements. Actual results may differ materially from estimates due to the factors listed above.

Investor Verification Checklist

  • Verify the final closing date of the Private Placement (expected April 7, 2020) and confirmation of the $45.0 million receipt.
  • Confirm the filing of the proxy statement for stockholder approval of the Series A Preferred Stock conversion and warrant exercise (required within 20 business days of closing).
  • Monitor the Company's ability to meet the $3.0 million monthly cash flow payment requirement to warehouse lenders through August 2020.
  • Review the final audited financial statements for the year ended December 31, 2019, and quarter ended March 31, 2020, to validate the preliminary equity estimates ($152M and $250M).
  • Assess the impact of the 25 basis point interest rate increase and shortened maturity on the Company's cost of capital and refinancing risk.

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