Skip to content secures $ 750 million injection in new deal with its backers PSPC – TechCrunch

Digital mortgage lender, which announced its IPO via a PSPC in May, is receiving an infusion of funds from its lenders earlier than expected. The blank check company Aurora Acquisition Corp. and SoftBank decided to change the terms of their funding agreement to provide Better with half of the $ 1.5 billion they pledged immediately instead of waiting for the deal to go through.

Sources close to the deal who preferred to remain anonymous told TechCrunch that with the new deal, capital is now reaching the company’s balance sheet (faster than initially expected) and putting more money on the overall balance sheet. to fuel growth. Specifically, according to an email from Better CFO Kevin Ryan to the company and obtained by TechCrunch, will have $ 1 billion on its balance sheet by the end of the week.

In the email, Ryan told employees:

We have advanced the financing of our SPAC agreement… With this new structure, the company will strengthen our balance sheet and position us as extremely well capitalized in a difficult mortgage market. Surviving is winning and capital is survival… By the end of this week, we expect to have $ 1 billion in cash on the company’s balance sheet. Quantum is more than we’ve ever had. [sic] We will continue to work on the public registration process, but the most important step has been taken (getting the money).

The new deal will replace the previous deal whereby $ 950 million of the $ 1.78 billion in committed funding from Aurora and SoftBank would have been used to buy existing shares from Better shareholders rather than the company receiving them directly in. his record.

The amended terms will not change Better’s implied valuation of $ 6.9 billion, according to the company.

As for what Better plans to do with the capital, a spokesperson told TechCrunch that the money would help the company to double the existing business, to continue to create “a first-time, bespoke home-buying experience.” and launching new products and services “that make the experience of home ownership after closing as amazing as customers deserve.

Better, which recently added a number of new insurance products, plans to expand its offering to other product categories, including personal loans, student loans and life insurance.

The company chose to go public through a SPAC rather than going the traditional IPO route because it preferred the performance guarantee SoftBank offered it with the blank check agreement, the CEO said. Vishal Garg in September.

Note: The title and article have been updated after publication to accurately reflect the amount of the cash injection

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