Firm takes advantage of investment opportunities in today’s market to expand portfolio
Velocity Financial has entered into a five-year term loan with a syndicate of lenders, including Blackrock’s US Private Capital Group, Oaktree Capital Management, and UBS O’Connor, to support the growth of its loan activities.
The Westlake Village, California-based firm announced Tuesday that it closed an initial $125 million funding, with an additional $50 million as a delayed draw feature, for a new loan facility. According to its Press release, it will use the proceeds of the term loan to refinance existing debt and originate new loans.
“We are excited to partner with an impressive team of lenders that believe in our strategy and support our growth plans,” said Mark Szczepaniak, chief financial officer of Velocity Financial. “We intend to capitalize on the considerable investment opportunities in today’s market through increased loan production and market share growth to expand our existing portfolio.”
In addition to the $175 million term loan, the firm secured a new $200 million non-market-to-market warehouse facility with Barclays Bank to finance new originations. Szczepaniak described the combination of the two new lending facilities as a “critical step” in further solidifying the Velocity’s financing for platform growth.
“We appreciate the leadership of Jefferies Finance LLC, as sole lead arranger and sole bookrunner on the new term loan,” Szczepaniak said.
