Company: FOACW
Filing Date: 2025-05-23
Form Type: 10-Q/A
Source: 0001828937-25-000042
Chunk: 36

Company: Finance of America Companies Inc.
Filing Date: 2025-05-23
Form: 10-Q/A
Chunk 36
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 coverage ratio, tangible net worth amounts, and required profitability.

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| Finance of America Companies Inc.                                
 Notes to Condensed Consolidated Financial Statements (Unaudited) |

The terms of the Company’s financing arrangements and credit facilities contain covenants, and the terms of the Company’s government sponsored entities (“GSE”)/seller servicer contracts contain requirements that may restrict FoA Equity and its subsidiaries from paying distributions to its members. These restrictions include restrictions on paying distributions whenever the payment of such distributions would cause FoA Equity or its subsidiaries to no longer be in compliance with any of its financial covenants or GSE requirements. Further, FoA Equity is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of FoA Equity (with certain exceptions) exceed the fair value of its assets. Subsidiaries of FoA Equity are generally subject to similar legal limitations on their ability to make distributions to FoA Equity.

As of June 30, 2024, the maximum allowable distributions available to the Company based on the most restrictive of such financial covenant ratios is presented in the table below (in thousands, except for ratios):

| Financial Covenants         
 FAR                         |     | Requirement |         |     | June 30, 2024 |         |     | Maximum Allowable Distribution(1) |         |
|:----------------------------|:----|:------------|--------:|:----|:--------------|--------:|:----|:----------------------------------|--------:|
| Adjusted Tangible Net Worth |     | $           | 250,000 |     | $             | 483,758 |     | $                                 | 233,758 |
| Liquidity                   |     |             |  40,000 |     |               |  43,793 |     |                                   |   3,793 |
| Leverage Ratio              |     | 6:1         |         |     | 3.1:1         |         |     |                                   | 237,262 |
| FAH                         |     |             |         |     |               |         |     |                                   |         |
| Adjusted Tangible Net Worth |     | $           | 200,000 |     | $             | 459,959 |     | $                                 | 259,959 |
| Liquidity                   |     |             |  40,000 |