loanDepot Restructures Debt: New Agreements & Obligations

TL;DR

**LDI just shook up its debt, entering new agreements and obligations.**

AI Summary

loanDepot, Inc. (LDI) filed an 8-K on January 31, 2024, reporting significant changes to its financial obligations as of January 25, 2024. The company entered into a new material definitive agreement, terminated another, and created a direct financial obligation. This matters to investors because these actions indicate a restructuring of loanDepot's debt or financing, which could impact its liquidity, cost of capital, and ultimately, its profitability and stock valuation.

Why It Matters

This filing signals a significant shift in loanDepot's financial structure, potentially affecting its operational flexibility and future earnings. Investors should monitor the details of these new agreements to assess their impact on the company's financial health.

Risk Assessment

Risk Level: medium — The termination and creation of material definitive agreements, along with new financial obligations, introduce uncertainty regarding the company's financial stability and future performance.

Analyst Insight

A smart investor would seek out the details of the 'material definitive agreements' and 'direct financial obligation' mentioned in this 8-K to understand the specific terms, amounts, and counterparties involved, as these will dictate the true impact on loanDepot's financial health.

Key Players & Entities

• loanDepot, Inc. (company) — the registrant filing the 8-K
• LDI (company) — trading symbol for loanDepot, Inc.
• January 25, 2024 (date) — date of the earliest event reported in the 8-K
• January 31, 2024 (date) — date the 8-K was filed

FAQ

Key Financial Figures

• $0.001 — hich registered Class A Common Stock, $0.001 Par Value LDI New York Stock Exchange

Filing Documents

• ldi-20240125.htm (8-K) — 57KB
• a101loandepot_nomura-gmsrx.htm (EX-10.1) — 186KB
• a102loandepot_nomura-gmsrx.htm (EX-10.2) — 617KB
• a103loandepot_nomura-gmsrx.htm (EX-10.3) — 1530KB
• a104loandepot_nomura-gmsrx.htm (EX-10.4) — 158KB
• a105loandepot_nomura-serie.htm (EX-10.5) — 139KB
• a106amendedandrestatedseri.htm (EX-10.6) — 136KB
• a107amendedandrestatedseri.htm (EX-10.7) — 138KB
• a108loandepot_nomura-gmsrx.htm (EX-10.8) — 689KB
• a109loandepot_nomura-gmsrx.htm (EX-10.9) — 768KB
• a1010piavf1masterrepurchas.htm (EX-10.10) — 761KB
• a1011loandepot_nomura-gmsr.htm (EX-10.11) — 50KB
• 0001831631-24-000015.txt ( ) — 6100KB
• ldi-20240125.xsd (EX-101.SCH) — 2KB
• ldi-20240125_lab.xml (EX-101.LAB) — 23KB
• ldi-20240125_pre.xml (EX-101.PRE) — 12KB
• ldi-20240125_htm.xml (XML) — 3KB

02 Termination of a Material Definitive Agreement

Item 1.02 Termination of a Material Definitive Agreement. loanDepot.com, LLC ("Company"), is a Delaware limited liability company and an indirect subsidiary of loanDepot, Inc. In August 2017, Company entered into a participation agreement pursuant to which the Company, as initial participant, was issued participation certificates representing beneficial interests in excess spread and advance reimbursement amounts (the "Excess Spread PC") relating to Ginnie Mae mortgage servicing rights (the "GNMA MSRs") owned by Company. Company entered into a master repurchase agreement with one of its wholly-owned subsidiaries, loanDepot GMSR Master Trust ("Issuer"), and pledged the Excess Spread PC and the GNMA MSRs to Issuer, which in turn entered into a base indenture (the "Original Base Indenture") to finance the Excess Spread PC and the GNMA MSRs. Pursuant to the terms of the Original Base Indenture, Issuer may, from time to time pursuant to the terms of any supplemental indenture, issue to institutional investors variable funding notes or one or more series of term notes, in each case secured by participation certificates relating to the GNMA MSRs held by Issuer (collectively, the "Original GMSR Facility"). On November 15, 2021, the Original GMSR Facility was amended and restated pursuant to which the Excess Spread PC was amended to reflect a participation interest in only the portfolio excess spread and entitle the holder to receive collections solely with respect to the portfolio excess spread, and Company created a separate participation interest in the advance reimbursement amounts that entitle the holder to receive collections with respect to such advance reimbursement amounts (the "P&I Advance PC"), and a separate participation interest in the servicing advance reimbursement amounts that entitle the holder to receive collections with respect to such servicing advance reimbursement amounts (the "Servicing Advance PC"). In connection with the Original GMSR Facility

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1 Third Amended and Restated Participation Agreement, dated as of January 25, 2024, by and between loanDepot.com, LLC, as the company, and loanDepot.com, LLC, as the initial participant, and consented to by Nomura Corporate Funding Americas, LLC, as administrative agent and as noteholder of 100% of the outstanding VFNs. 10.2 Third Amended and Restated Master Repurchase Agreement, dated as of January 25, 2024, by and between loanDepot GMSR Master Trust, as buyer, and loanDepot.com, LLC, as seller, and consented to by Citibank, N.A., as indenture trustee, and Nomura Corporate Funding Americas, LLC, as administrative agent and as noteholder of 100% of the outstanding VFNs. 10.3 Third Amended and Restated Base Indenture, dated as of January 25, 2024, by and among loanDepot GMSR Master Trust, as issuer, Citibank, N.A., as indenture trustee, calculation agent, paying agent and securities intermediary, loanDepot.com, LLC, as servicer and administrator, Nomura Corporate Funding Americas, LLC, as administrative agent, and Pentalpha Surveillance LLC, as credit manager, and consented to by Nomura Corporate Funding Americas, LLC, as noteholder of 100% of the outstanding VFNs. 10.4 Second Amended and Restated Series 2017-VF1 Indenture Supplement, dated as of January 25, 2024, to Third Amended and Restated Base Indenture, dated as of January 25, 2024 (see exhibit 10.3 hereof), MSR Collateralized Notes, Series 2017-VF1, by and among loanDepot GMSR Master Trust, as issuer, Citibank, N.A., as indenture trustee, calculation agent, paying agent and securities intermediary, loanDepot.com, LLC, as servicer and administrator, and Nomura Corporate Funding Americas, LLC, as administrative agent, and consented to by Nomura Corporate Funding Americas, LLC, as noteholder of 100% of the outstanding VFNs. 10.5 Amended and Restated Series 2017-MBSADV1 Indenture Supplement, dated as of January 25,

View Full Filing

View this 8-K filing on SEC EDGAR