Company well-positioned to continue delivering industry-leading Benji business during reorganization and has entered into definitive agreement with Finance of America for sale of Benji assets.
SAN DIEGO, CA, December 21,2020 – Renovate America, Inc. (“Company”), a leading home improvement financing company, today announced it has entered into a definitive asset purchase agreement with Finance of America Mortgage LLC (“Finance of America”) to acquire all of the assets of the Company’s industry-leading, home financing product, Benji®. A portfolio company of The Blackstone Group Inc., a leading global investment firm, Finance of America has spent nearly a decade developing and delivering residential and commercial loan and lending products and services for customers.
To facilitate the sale process and address its debt obligations, the Company has also filed a petition for a court-supervised voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company has obtained $13 million in DIP financing from Finance of America. Following court approval, the DIP financing will ensure that the Company has sufficient liquidity to continue normal operations and to meet its financial obligations during the Chapter 11 process. This specifically includes the timely payment of employee wages and health benefits, continued funding of loans in the market, and other obligations.
Under the terms of the agreement, Finance of America will act as the stalking horse bidder throughout a court-supervised sale process. Among other things, the sale agreement is subject to higher or better bids from other potential purchasers.
“As we look to the future, we have selected Finance of America as the ideal partner to grow our Benji business. Their suite of lending products already has an established track record of substantial success,” said Shawn Stone, Chief Executive Officer for Renovate America. “The path we have chosen will ensure Benji’s continued growth within the home industry business, and we can’t wait for our high-quality teams and customers to grow with it.”
This process will allow the Company to ensure the viability of its business while providing sufficient liquidity to fully support operations through the closing of the transaction. Renovate America believes this process will yield long-term benefits for its employees, contractors and vendors.
“We have been working diligently with our advisors for months and identified this as the best path forward,” added Stone. “We expect this process to move quickly, and once complete, we will be better positioned to focus our efforts on substantially growing Benji, enhancing our talented teams and delivering the best, most innovative product offerings to our valued customers.”
Bryan Cave Leighton Paisner LLP is acting as the Company's legal counsel. Further information, including copies of first day motions and related bankruptcy filings are being maintained on the Claims Agent website, at https://cases.stretto.com/RenovateAmerica
About Renovate America
Renovate America is one of the nation’s preeminent providers of home improvement financing through its industry-leading home financing product, Benji. The Company offers a proprietary technology platform that helps Americans improve their homes while giving contractors the tools they need to grow their business. In addition to offering intuitive financing options, Renovate America offers industry- leading education, training and mentoring to contractor teams in the field. For more information, visit www.renovateamerica.com