Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 114

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 8
Chunk 114
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 Assets Collateral, the “Initial Collateral”), and (iii) certain other residual proceeds of FAR. The Permanent Collateral includes, subject to permitted liens, the Pledged Risk Retention Securities and the equity interests in certain subsidiaries of FOA Equity (the “Permanent Collateral” and together with the Initial Collateral, the “Collateral”).FOAF and the Guarantors, as applicable, are required to enter into certain deposit account and securities account control agreements with respect to the Collateral, including under certain circumstances and threshold amounts with respect to unrestricted cash, subject to certain permitted uses.On the Issue Date, in connection with the issuance of the Secured Notes, FOAF entered into a pledge and security agreement (the “Pledge and Security Agreement”) with the Collateral Trustee (appointed as such thereunder for purposes of the holding and perfecting the liens securing the Secured Notes) and the grantors party thereto, pursuant to which the Collateral securing the Secured Notes’ obligations was granted.2025 Unsecured NotesThe 2025 Unsecured Notes bear interest at a rate of 7.875% per year, payable semi-annually in arrears on May 15 and November 15. As of December 31, 2024 and December 31, 2023, the effective interest rate for our 2025 Unsecured Notes was 7.7% and 7.8%, respectively.  Working Capital Promissory NotesThe Company also has related party working capital promissory notes, which are further discussed in Note 27 - Related Party Transactions.Notes payable, net, consisted of the following (in thousands):DescriptionMaturity DateInterest RateDecember 31, 2024December 31, 2023Senior Secured NotesNovember 2026(1)7.875%$195,784 $— Exchangeable Secured NotesNovember 202910.000%146,793 — Working Capital Notes May 202515.000%85,000 59,130 2025 Unsecured NotesNovember 20257.875%7,378 350,000 Fair value adjustment, net of amortization(2)— 1,781 Unamortized debt discount and issuance costs(3)(60,444)— Total notes payable, net$374,511 $410,911 (1) At the election of the Company, the maturity date may be extended to November 2027, as discussed