Company: FOACW
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001828937-25-000009
Chunk: 264

Company: Finance of America Companies Inc.
Filing Date: 2025-03-14
Form: 10-K
Item: Item 3
Chunk 264
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secured 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 in the Senior Secured Notes section above. (2) In conjunction with a previous business combination, the Company was required to adjust the liabilities assumed to fair value, resulting in a premium on the 2025 Unsecured Notes and the elimination of the previously recognized debt issuance costs.  (3) In conjunction with the exchange of the 2025 Unsecured Notes and Secured Notes, the Company initially recorded the Secured Notes at fair value, which resulted in a debt discount of $56.2 million. As of December 31, 2024, the Senior Secured Notes and Exchangeable Secured Notes, respectively, had $39.7 million and $20.7 million of unamortized debt discount and issuance costs.    

149

Finance of America Companies Inc.Notes to Consolidated Financial Statements

Non-funding interest expense consisted of the following (in thousands): For the year ended December 31, 2024For the year ended December 31, 2023Senior secured notesContractually stated$2,543 $— Amort