loanDepot completes $200 million secured note offering

IRVINE, Calif. - loanDepot, Inc. (NYSE: LDI), a prominent player in the homeownership market with a market capitalization of $414 million and trailing twelve-month revenue of $1.09 billion, has successfully completed a private offering of secured term notes, raising $200 million. The notes, issued by loanDepot’s indirect subsidiary, loanDepot GMSR Master Trust, are backed by certain assets, including mortgage servicing rights excess spread.

The variable-rate notes, which are based on SOFR plus a margin, are slated to mature on May 16, 2030, with a potential extension to May 17, 2032. The capital raised, after deducting fees, has been allocated to redeem the Series 2018-GT1 Term Notes, which were set to mature in October 2025. According to InvestingPro data, the company’s current stock price of $1.26 appears undervalued based on their proprietary Fair Value model, though investors should note the company’s weak financial health score of 1.54 out of 5.

Nomura Securities International, Inc. played a pivotal role in the transaction as the manager and initial purchaser, while Alston & Bird LLP served as legal counsel to loanDepot. David Hayes, loanDepot’s Chief Financial Officer, expressed satisfaction with the transaction’s terms and execution, attributing success to the company’s robust financing strategy and partnership with Nomura.

Sanil Patel, Global Head of Mortgage Structured Lending at Nomura Securities International, also remarked on the longstanding partnership with loanDepot, emphasizing Nomura’s flexible capital and extensive structuring capabilities that provide creative solutions and asset-based finance investments.

The offering of these notes will not be registered under the Securities Act of 1933 and will not be available for sale in the United States without registration or an exemption from the registration requirements. This press release serves as a record announcement and does not constitute an offer to sell or a solicitation of an offer to buy the securities.

loanDepot is headquartered in Southern California and offers a suite of digital-first lending products aimed at making homeownership more accessible and rewarding, particularly for diverse communities and first-time homebuyers. InvestingPro analysis reveals concerning cash burn rates and significant negative free cash flow of $795 million in the last twelve months. For deeper insights into loanDepot’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. The company, along with its sister company mellohome, is committed to fostering community growth and improving the future.

This report is based on a press release statement and contains forward-looking statements that are subject to risks and uncertainties. These statements are not guarantees of future performance and may differ materially from current plans or anticipated actions. loanDepot has no obligation to update any forward-looking statements publicly to reflect subsequent events or circumstances.

In other recent news, LoanDepot Inc. reported its first-quarter 2025 earnings, revealing a larger-than-expected loss per share but a notable improvement in revenue. The company posted a loss of $0.11 per share, missing the forecast of $0.06, while revenue increased to $274 million, surpassing the forecast of $268.62 million. Despite the earnings per share miss, LoanDepot demonstrated resilience in a challenging mortgage market, improving its net loss year-over-year and increasing loan origination volume by 14%. The company’s revenue rose to $278 million from $231 million in the first quarter of 2024, driven by a 15% increase in rate lock volume.

Additionally, LoanDepot’s gain on sale margin improved to 355 basis points, up from 274 basis points last year. The company anticipates a pull-through weighted lock volume of $5.5-$8.0 billion and an origination volume of $5.0-$7.5 billion for the second quarter of 2025. Looking ahead, LoanDepot expects a gain on sale margin of 300-350 basis points, with potential interest rate decreases possibly aiding market recovery. In leadership news, Frank Martell announced his plan to step down as CEO, with founder Anthony Shea set to assume the role of interim CEO, aiming to capitalize on the company’s strengths to drive growth.

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