Finance of America Equity Capital LLC (“Finance of America” or
the “Company”), an end-to-end lending and services platform, and
Replay Acquisition Corp. (NYSE: RPLA) (“Replay Acquisition”), a
publicly traded special purpose acquisition company, today
announced the completion of their previously announced transaction
to take Finance of America public. The combined company is named
Finance of America Companies Inc., and its common stock and
warrants will begin trading Monday, April 5, on the New York Stock
Exchange (“NYSE”) under the ticker symbols “FOA” and “FOA.WS,”
respectively.
Finance of America Companies Inc. (“FOA”) enters the public
markets as a highly differentiated, diversified consumer lending
platform that is capable of delivering cycle-resistant earnings.
Its lending businesses are supported by strong, uncorrelated
secular tailwinds and include mortgages, reverse mortgages and
commercial loans offered across distributed retail, third-party
brokers and digital direct-to-consumer channels. FOA recently
launched a complementary home improvement loan vertical with the
acquisition of Renovate America’s Benji®business, further enhancing
its ability to meet consumers’ financial needs at each stage of
their lives. In addition to its lending businesses, FOA has a
fee-for-service business as well as a portfolio management business
that includes a broker-dealer and a registered investment adviser.
These business lines further broaden FOA’s revenue streams and
provide multiple avenues of growth. FOA is well positioned to
continue to expand organically by introducing innovative new
products – as demonstrated with the recent launch of EquityAvail™ –
and inorganically by successfully acquiring, integrating and
optimizing businesses on its platform.
The successful closing of the transaction follows FOA posting
another quarter of strong financial and operating performance
across its multiple lines of business. FOA’s fourth quarter results
for the period ended December 31, 2020, drove record full-year
performance of $500 million in pre-tax income that represented 541%
year over year growth and exceeded the high-end of the company’s
guidance range. These results further demonstrate the power of
FOA’s diversified platform, the demand for its products across its
addressable markets, and the effectiveness of its asset and capital
light business model.
“We are excited to enter our next chapter of growth as a
publicly traded company and look forward to capitalizing on the
many opportunities ahead of us,” said Patricia Cook, CEO of FOA.
“Our value proposition is truly unique given our proven ability to
innovate and deliver complementary financial solutions that
consumers want and investors value. These attributes should
continue to provide us with a sustainable competitive advantage.
Today’s milestone would not be possible without the support of
everyone on our team who has worked diligently and passionately to
advance our mission.”
Brian Libman, Chairman and Founder of FOA, stated, “What started
eight years ago as a novel idea to reinvent the traditional finance
company model has culminated in the sustained growth of a
one-of-a-kind, end-to-end consumer lending platform that is capable
of meeting the full range of borrower needs while at the same time
delivering strong returns for investors. I am proud and humbled to
reach this point in Finance of America’s evolution, and remain as
committed as ever to advancing the company’s strategic
priorities.”
Edmond Safra, Co-CEO of Replay Acquisition, commented, “With its
broad suite of products, multi-channel distribution network,
unparalleled track record of innovation and impressive financial
performance, Finance of America stands out among its monoline
industry peers. Benefiting from multiple growth vectors, Finance of
America is redefining consumer lending in a manner that should
continue to deliver compelling value to customers and investors
alike over the long-term.”
Ms. Cook will continue to lead FOA with the support of the
company’s highly experienced management team. The current owners of
FOA, which include management, entities managed by Mr. Libman, and
funds managed by Blackstone Tactical Opportunities, will own
approximately 80% of the combined company.
Simpson Thacher & Bartlett LLP acted as legal advisor to
Finance of America. Credit Suisse Securities (USA) LLC acted as
capital markets advisor to Replay Acquisition. Morgan Stanley &
Co. LLC and Goldman Sachs & Co. LLC served as lead placement
agents and Credit Suisse Securities (USA) LLC served as placement
agent for the PIPE. Greenberg Traurig, LLP acted as legal advisor
to Replay Acquisition.
Additional information about the completed transaction will be
provided in a Current Report on Form 8-K to be filed by FOA with
the Securities and Exchange Commission and available at
sec.gov.
About Finance of America Companies
Finance of America is a diversified, vertically integrated
consumer lending platform. Product offerings include mortgages,
reverse mortgages, and loans to residential real estate investors
distributed across retail, third party network, and digital
channels. In addition, Finance of America offers complementary
lending services to enhance the customer experience, as well as
capital markets and portfolio management capabilities to optimize
distribution to investors. The Company is headquartered in Irving,
TX, and is a portfolio company of the leading global asset manager,
The Blackstone Group. The company is listed on the NYSE under the
ticker symbol “FOA.” For more information, please visit
www.financeofamerica.com.
About Replay Acquisition Corp.
Founded by Edmond Safra, Gregorio Werthein and Gerardo Werthein,
Replay Acquisition Corp. was formed for the purpose of effecting a
merger, amalgamation, share exchange, asset acquisition, share
purchase, reorganization or similar business combination with one
or more businesses on industries that it believes have favorable
prospects and a high likelihood of generating strong risk-adjusted
returns for its shareholders. www.replayacquisition.com
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. Replay
Acquisition’s and FOA’s actual results may differ from their
expectations, estimates, and projections and, consequently, you
should not rely on these forward-looking statements as predictions
of future events. Words such as “expect,” “estimate,” “project,”
“budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,”
“will,” “could,” “should,” “believes,” “predicts,” “potential,”
“continue,” and similar expressions (or the negative versions of
such words or expressions) are intended to identify such
forward-looking statements.
Each of Replay Acquisition and FOA cautions readers not to place
undue reliance upon any forward-looking statements, which speak
only as of the date made. Each of Replay Acquisition and FOA does
not undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
to reflect any change in its expectations or any change in events,
conditions, or circumstances on which any such statement is
based.
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version on businesswire.com: https://www.businesswire.com/news/home/20210401005895/en/
For Finance of America Media: pr@financeofamerica.com For
Finance of America Investor Relations: ir@financeofamerica.com For
Replay Acquisition Corp.: info@replayacquisition.com
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