Velocity Financial, Inc. Announces New $175 Million Term Loan Facility and $200 Million Warehouse Facility

Velocity Financial, Inc. (NYSE: VEL), (“Velocity” or the “Company”), a leading provider of small balance investor loans, today announced that it has entered into a new $175 million, 5-year term loan with a syndicate of lenders including funds managed by Blackrock’s U.S. Private Capital group, Oaktree Capital Management, L.P., and UBS O’Connor. The new facility has an initial $125 million funding as of the closing date, with an additional $50 million as a delayed draw feature. Proceeds of the new term loan facility will be used to refinance existing debt and originate new loans. In addition, the Company secured a new $200 million non-mark-to-market warehouse facility with Barclays Bank, PLC to finance new originations.

Mark R. Szczepaniak, CFO, stated, “We are excited to partner with an impressive team of lenders that believe in our strategy and support our growth plans. We intend to capitalize on the considerable investment opportunities in today’s market through increased loan production and market share growth to expand our existing portfolio."

Mr. Szczepaniak continued, "We appreciate the leadership of Jefferies Finance LLC, as Sole Lead Arranger and Sole Bookrunner on the new term loan. The combination of these two new lending facilities is a critical step in further solidifying our financing for platform growth.”

About Velocity Financial, Inc.

Based in Westlake Village, California, Velocity is a vertically integrated real estate finance company that originates and manages investor loans secured by 1-4 unit residential rental and small commercial properties. Velocity originates loans nationwide across an extensive network of independent mortgage brokers it has built and refined over 15 years.

Contacts

Chris Oltmann
(818) 532-3708