backA cross-office, cross-practice King & Spalding team represented Barclays Capital Inc., as representative of the initial purchasers, in connection with the offer and sale of $500 million aggregate principal amount of first time issuer Velocity Commercial Capital, LLC’s (the “Issuer”) 9.375% notes due 2031 in an unregistered offering pursuant to Rule 144A and Reg S.
The notes are unsecured, senior obligations guaranteed by the Issuer’s parent company, Velocity Financial, Inc. (NYSE: VEL), a leader in investor real estate loans. The net proceeds of the offering will be used to fund the redemption of the Issuer’s 7.125% senior secured notes due 2027, with the remainder to be used for general corporate purposes.
Velocity is a vertically integrated real estate finance company that primarily originates and manages business purpose loans secured by 1–4-unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers built and refined over 21 years.
The multidisciplinary King & Spalding team representing Barclays was led by Keith Townsend, Marisa Sotomayor, and Liz Morgan, supported by Mark Hanley, Nick Markwordt, Yuhan Liu, Serena Granger and George Komnenos.