Velocity Financial, Inc. Announces Closing of Offering of $500 Million of Senior Notes Due 2031

About this update from Velocity Financial, Inc.

WESTLAKE VILLAGE, Calif., January 30, 2026--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE: VEL) ("Velocity" or the "Company"), a leader in investor real estate loans, today announced the closing of Velocity Commercial Capital, LLC’s, a wholly-owned subsidiary of Velocity (the "Issuer"), previously announced offering of $500 million aggregate principal amount of 9.375% Senior Notes due 2031 (the "Notes") which was sold at an offering price equal to 100% of the principal thereof in an offering exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") to individuals reasonably believed to be "qualified institutional buyers" pursuant to Rule 144A under the Securities Act and to certain persons outside the United States in reliance on Regulation S under the Securities Act (the "Offering"). The Notes are guaranteed by the Company on a senior unsecured basis and are not guaranteed by any of the Company’s subsidiaries as of the closing date. The Notes bear interest at a rate of 9.375% per annum. Interest on the Notes is payable semi-annually in arrears on February 15 and August 15 of each year, commencing August 15, 2026, and accrues from January 30, 2026. The Notes will mature on February 15, 2031. After deducting fees and expenses payable by the Company, the net proceeds from the issuance and sale of the Notes were approximately $487 million. The Company intends to use approximately $222.7 million of the net proceeds of the Offering to fund the redemption of the Issuer’s outstanding 7.125% Senior Secured Notes due 2027 (the "2027 Notes") and the remainder for general corporate purposes, which may include the repayment of a portion of the outstanding borrowings under the Company’s warehouse repurchase and revolving loan facilities and the use of up to $75 million for the acquisition of a business that Velocity is considering acquiring. Nothing in this press release constitutes a notice of redemption or any offer to purchase or solicitation of an offer to sell any of the outstanding 2027 Notes. The Notes and the related guarantee have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction and may not be offered or sold in the United States...

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