|6 Months Ended|
Jun. 30, 2021
|Subsequent Events [Abstract]|
The Company has evaluated subsequent events from the date of the Consolidated Financial Statements of June 30, 2021 through August 16, 2021, the date these Consolidated Financial Statements were issued. No events or transactions were identified that would have an impact on the financial position or results of operations of the Company as of June 30, 2021 (Successor) as reported herein. However, management of the Company believes disclosure of the following events is appropriate.
Reverse Loan Securitization
In July 2021, the Company securitized approximately $296.0 million of its reverse mortgage loans, through the issuance of approximately $331.9 million of mortgage backed notes, which accrue interest at an annual rate of 1.3% on a weighted average basis on the principal balance of the notes and have a scheduled final maturity date occurring in July 20
26. The $331.9 million of mortgage backed notes were issued at a weighted average price of
98.3%. The principal and interest on the outstanding notes will be paid using the cash flows from the related reverse mortgage loans, which serve as collateral for the debt. The securitization is callable by the Company with the optional redemption date being any date beginning with the payment date occurring in July 2024.
This securitization will be accounted for as a secured financing in the Company’s Consolidated Statements of Financial Condition.
In July 2021, upon meeting the contractual exercise condition, the Company exercised its warrant for the purchase of 6,426,015 Series A-2 Convertible Preferred Units of FarmOp at the contractual cash exercise price of $0.0001 per unit. Following this exercise, FoA’s percentage of fully-diluted equity ownership of FarmOp is 36.4%.
Financing Lines of Credit
The July 2021 $200.0 million facility was amended in July 2021. Under the terms of the new amended agreement, the maturity date was extended to July 2022.
The August 2021 $300.0 million facility was amended in August 2021. Under the terms of the new amended agreement, the maturity date was extended to September 2021.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef