- Better Home & Finance (NASDAQ: BETR) restructures approximately $530 million of convertible notes, creating $265 million in pre-tax equity value.
- The restructuring involves a $110 million cash payment and $155 million in new debt, maturing on December 31, 2028, with a 6% annual interest rate.
- Company's AI mortgage platform, including Betsy™ AI Loan Assistant, engages in over 115,000 customer interactions monthly and increases AI underwriting from 40% to over 75% of locked loans.
Better Home & Finance Holding Company (NASDAQ: BETR), a leading AI-powered mortgage lender, has announced a significant debt restructuring by retiring approximately $530 million of convertible notes. This strategic move, involving a cash payment of $110 million and $155 million in new debt, is poised to create $265 million in pre-tax equity value, significantly improving the company's financial standing.
The newly issued senior secured notes, due on December 31, 2028, carry an annual interest rate of 6%, with options for payments in cash or in-kind, providing Better Home & Finance flexibility to manage cash flows while pursuing growth initiatives. CEO Vishal Garg emphasized that this restructuring will contribute to long-term shareholder value and align with the company's mission of making home ownership more accessible.
In tandem with the financial restructuring, Better Home & Finance continues to enhance its AI-driven mortgage solutions. The company's Tinman™ technology and Betsy™ AI Loan Assistant, handling over 115,000 customer interactions monthly, are key components of their growing mortgage platform. The AI underwriting capability is expected to rise from 40% to over 75% of locked loans, marking a significant leap in operational efficiency. Loan officer productivity has also soared to more than three times the industry median, positioning Better Home & Finance as a strong competitor in the mortgage industry.
