Breaking Stories

The Wall Street Journal: Mortgage lender Better to go public through SPAC

0

Startup mortgage lender Better, whose valuation has swelled in the private markets, said Tuesday that it plans to go public by merging with a special-purpose acquisition company.

Better Holdco Inc., which operates a digital platform for mortgages and related services, plans to merge with Aurora Acquisition Corp. 
AURC,
-5.71%

 , a SPAC sponsored by the investment firm Novator Capital, the companies said. The deal, reported Monday by the Wall Street Journal, values Better at roughly $6.9 billion pre-new money, up from $4 billion late last year.

SoftBank Group Corp. 
9984,
-6.51%

 , which recently invested $500 million in Better as part of a deal making sprint, could put in an additional $1.3 billion through what is known as a PIPE, or private investment in public equity, a common feature of SPAC mergers. (Better could place $400 million of that with other investors.) The remaining $200 million of the $1.5 billion PIPE is to come from Aurora, whose sponsor is the investment vehicle of Icelandic billionaire Thor Bjorgolfsson.

Better would raise nearly $800 million in new capital in the deal, with an additional roughly $950 million in proceeds going to cash out existing shareholders. As part of the transaction, customers who previously took out a mortgage from Better would be able to buy stock in the company through a direct share purchase program. Better’s co-founder and chief executive, Vishal Garg, wouldn’t sell shares in the offering.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Americans up and moved during the pandemic. Here’s where they went.

Seychelles, the world’s most vaccinated nation, sees renewed COVID-19 surge.

Capitol Report: Biden administration says no need to hoard gasoline after Colonial Pipeline attack, sees ‘supply crunch’ not a shortage

Previous article

: Jeff Bezos has sold $6.7 billion in Amazon shares over the past week

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *