Better Home & Finance announced Monday that it's strengthening its finances through unexpectedly high originations, cost cuts, the sale of a United Kingdom bank and a stock offering.
The company reported that it is categorizing Birmingham Bank as held-for-sale and indicated it was actively working to shed it. Better also noted it has priced a class A common stock offering, after which the company will end its at-the-market equity program.
These moves, in conjunction with at least $25 million in expense reductions it plans to engage in during the second quarter, follow the completion of plans to scale up
"Our decision to raise capital, simplify our international footprint, and reduce costs will position the company to act decisively on high-conviction growth opportunities without reliance on the equity capital markets," CEO Vishal Garg said in a press release.
More details from recent announcements
- The $60 million public stock offering with over-allotments of $9 million priced at an approximate 3.9% discount to the company's 30-day volume weighted average price of its class A shares on April 7.
- The preliminary loan volume number topped $1.64 billion despite
purchase market softness , outpacing guidance for $1.4 billion-$1.55 billion. This marked an 89% increase from a year earlier and roughly a 12% gain onthe previous quarter's $1.46 billion.
- The company said it has a "clear line of sight" to break even on its adjusted earnings before interest, taxes, depreciation and amortization by the time the third quarter closes.
