Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-K/A
Source: 0001828937-25-000032
Chunk: 86

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-K/A
Chunk 86
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 subsidiaries’ operations or from third-party sources on favorable terms, or at all, at the time of repayment, especially in light of current market conditions, which could adversely affect our financial position.

FOA Equity has two amended and restated revolving working capital promissory notes outstanding, one with BTO Urban Holdings L.L.C. and one with Libman Family Holdings, LLC (the “Working Capital Promissory Notes”). As of December 31, 2024, the aggregate principal amount outstanding pursuant to the Working Capital Promissory Notes was $85.0 million. The Working Capital Promissory Notes accrue interest at a rate of 15.0% per annum and mature on May 25, 2025. Further, the Company’s subsidiary, FOAF, has senior unsecured notes outstanding (the “2025 Unsecured Notes”). As of December 31, 2024, the aggregate principal amount outstanding pursuant to the 2025 Unsecured Notes was $7,378,000. The 2025 Unsecured Notes accrue interest at a rate of 7.875% per annum and mature on November 15, 2025. FOAF also has new senior secured notes outstanding (the “Senior Secured Notes”). As of December 31, 2024, the aggregate principal amount outstanding pursuant to the Senior Secured Notes was $195,783,947. The Senior Secured Notes accrue interest at a rate of 7.875% per annum. FOAF is required to partially prepay a portion of the outstanding principal amount of the Senior Secured Notes on November 15, 2025 in an amount equal to $0.23 per $1.00 principal amount of Senior Secured Notes outstanding as of such date, which, based on the principal amount outstanding as of December 31, 2024, would result in a required principal prepayment of $45,030,308. Additionally, FAR’s warehouse facility backed by HECM mortgage servicing rights (the “HMSR Financing”) will enter its scheduled amortization period in the fourth quarter of 2025.

Our ability to repay the amounts due in 2025 with respect to the Working Capital Promissory Notes, the 2025 Unsecured Notes, the Senior Secured Notes, and the HMSR Financing generally requires access to capital. One of the strategies that our Company utilizes to repay and service its debt is to monetize equity in its outstanding securitizations of non-agency reverse mortgage loans