Better.com retires $530m in debt, unlocks $265m in equity
Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) (“Better” or “Better.com” or “the Company”), the leading AI home finance company with over $100 billion of mortgages funded on its Tinman™ AI platform, today reported that it has restructured its outstanding convertible notes with its lender to retire approximately $530 million of outstanding debt in exchange for a one-time cash consideration of $110 million and the issuance of $155 million of new senior secured notes from SB Northstar LP, the Company’s existing noteholder, which will be due December 31, 2028 and will accrue interest at a rate of 6% per annum that is payable, at Better’s option, in kind (PIK) or in cash.
2
External
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
“We are extremely pleased to retire the Company’s outstanding convertible debt and right size its liability structure,” said Vishal Garg, Founder & CEO of Better.com. “This transaction will create approximately $265 million of positive pre-tax equity value for the Company and its shareholders, as well as create a path to long-term value creation for our equity holders. We continue to invest in building the leading AI platform in the mortgage industry, and fulfilling our mission of making homeownership cheaper, faster and easier, and just plain better for all Americans.”
“With the completion of this debt restructuring, our next two priorities are growth and profitability,” said Kevin Ryan, CFO of Better.com. “We will continue building out our NEO platform, lean into productivity-driven savings through AI deployment across our mortgage business, and drive costs down further in our corporate functions. We are excited about using AI to drive the business towards growth and profitability, similar to the advances we experienced from 2016 to 2021, when we grew originations over 100x.”