Business
Better Home & Finance Holding Company Announces Retirement of Approximately $530 Million Convertible Notes; Creates Approximately $265 Million of Positive Pre-Tax Equity Value to Continue Expanding its AI Mortgage Platform
Retiring approximately $530 million of convertible notes through restructuring of existing convertible notes in exchange for $110 million of cash and $155
About this update from Better Home & Finance Holding Company
[{"type":"text","content":"\n\nRetiring approximately $530 million of convertible notes through restructuring of existing convertible notes in exchange for $110 million of cash and $155 million of new debt\n\n\nExpected creation of approximately $265 million of pre-tax equity, excluding discounts on the debt\n\n\nBetter has signed a new indenture for $155 million in new notes maturing December 31, 2028, with a 6% PIK annual interest rate\n\n\nStrategic rationale for transaction includes reducing debt overhang of the Company and improving balance sheet positioning and strategic optionality\n\n\nManagement remains focused on driving towards profitability in the midterm. Continue leaning into Tinman™ technology and AI, with Betsy™ AI Loan Assistant executing over 115k customer interactions per month, AI underwriting growing from 40% of locked loans to over 75% in the near future, and increasing loan officer productivity in terms of loans per month to over 3x mortgage industry median\n\n\n NEW YORK--(BUSINESS WIRE)--\nBetter Home & Finance Holding Company (NASDAQ: BETR; BETRW) (“Better” or “Better.com” or “the Company”), the leading AI home finance company with over $100 billion of mortgages funded on its Tinman™ AI platform, today reported that it has restructured its outstanding convertible notes with its lender to retire approximately $530 million of outstanding debt in exchange for a one-time cash consideration of $110 million and the issuance of $155 million of new senior secured notes from SB Northstar LP, the Company’s existing noteholder, which will be due December 31, 2028 and will accrue interest at a rate of 6% per annum that is payable, at Better’s option, in kind (PIK) or in cash.\n\n“We are extremely pleased to retire the Company’s outstanding convertible debt and right size its liability structure,” said Vishal Garg, Founder & CEO of Better.com. “This transaction will create approximately $265 million of positive pre-tax equity value for the Company and its shareholders, as well as create a path to long-term value creation for our equity holders. We continue to invest in building the leading AI platform in the mortgage industry, and fulfilling our mission of making homeownership cheaper, faster and easier, and just plain better for all Americans.”\n\n“With the completion of this debt restructuring, our next two priorities are growth and profita...