FOOTHILL RANCH, Calif., Oct. 22, 2020 /PRNewswire/ -- LD Holdings Group LLC (the "Company") announced today that it has upsized and priced its offering (the "Offering") of $500 million in aggregate principal amount of 6.500% senior unsecured notes due 2025 (the "Notes"). The principal amount of the Offering was increased from the previously announced offering size of $400 million. The notes were priced at par, will be senior unsecured obligations of the Company and will be initially guaranteed on a senior unsecured basis by loanDepot.com, LLC, Artemis Management LLC, LD Settlement Services, LLC and mello Holdings, LLC, each a material wholly-owned restricted subsidiary of the Company. The Company expects that the closing of the Offering will occur on October 27, 2020, subject to the satisfaction of customary closing conditions.
The Company expects to use the net proceeds from the Offering to repay the borrowings under its unsecured term loan, to pay down a portion of its secured credit facilities and for general corporate purposes.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States, or for the benefit of U.S. persons, except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities or blue sky laws. Accordingly, the Notes and related guarantees are being offered only to persons reasonably believed to be "qualified institutional buyers," as that term is defined under Rule 144A of the Securities Act, or to non-"U.S. persons" outside the United States in accordance with Regulation S under the Securities Act.
A confidential offering memorandum (the "Offering Memorandum") for the Offering of the Notes has been made available to such eligible persons. The Offering is being conducted in accordance with the terms and subject to the conditions set forth in such Offering Memorandum.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, the Notes or any other security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements," which reflect LD Holdings Group LLC and its subsidiaries' (collectively, "loanDepot") current views with respect to, among other things, its operations and financial performance. You can identify these statements by the use of words such as "outlook," "potential," "continue," "may," "seek," "approximately," "predict," "believe," "expect," "plan," "intend," "estimate" or "anticipate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would" and "could." Forward-looking statements include, but are not limited to, statements relating to the COVID-19 pandemic; the pandemic's impact on loanDepot's ability to originate mortgages and servicing operations; loanDepot's liquidity and employees; the executive, legislative and regulatory reaction to COVID-19, including the passage of the Coronavirus Aid, Relief, and Economic Security Act; loanDepot's recent rapid growth; loanDepot's ability to continue to grow its loan production volume; the market's acceptance of loanDepot's new products and enhancements; the departure or change in responsibilities of certain of loanDepot's senior management; loanDepot's ability to identify necessary and appropriate information technology system improvements; loanDepot's ability to maintain its reputation; loanDepot's ability to identify or consummate acquisitions or otherwise manage growth effectively; loanDepot's ability to successfully hedge changes in interest rates; the geographic concentration of loanDepot's loan originations; loanDepot's ability to indemnify certain purchasers of loans it originates; errors by management of loanDepot in estimates and judgment decisions in connection with matters that are inherently uncertain, such as fair value determinations; loanDepot's ability to maintain its relationships with its subservicers; loanDepot's ability to replace loans, which it services that are repaid or refinanced; loanDepot's ability to recover servicing advances; the ability of counterparties to terminate servicing rights and contracts; loanDepot's limited performance history of its servicing portfolio; increased costs and related losses regarding challenges to the validity of foreclosure actions; loanDepot's reliance on joint ventures with industry partners; challenges to the Mortgage Electronic Registration Systems; loanDepot's reliance on the accuracy and completeness of information about borrowers provided to it; loanDepot's ability to maintain its vendor relationships; loanDepot's ability to attract and retain qualified personnel; the occurrence of a data breach or other failure of loanDepot's cybersecurity; the outcome of legal proceedings to which loanDepot is a party; loanDepot's ability to obtain, maintain, protect and enforce its intellectual property; the impact of terrorist attacks or natural disasters; and changes in federal, state and local laws, as well as changes in regulatory enforcement policies and priorities.
These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions which are difficult to predict. Such risks include, without limitation, those identified under the heading "Risk Factors" contained in the Offering Memorandum. Therefore, current plans, anticipated actions, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.
An innovator since its inception in 2010, loanDepot continues to disrupt the lending industry with its focus on creating the technologies needed to deliver seamless borrowing experiences to its customers. loanDepot debuted the industry's first end-to-end fully digital loan, the mello smartloan™, in 2019. To date, loanDepot has funded over $275 billion in mortgage loans and ranks as one of the nation's largest retail mortgage lenders and the second largest nonbank retail mortgage lender. NMLS #17445.
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SOURCE LD Holdings Group LLC