Brian Sheth, Haveli’s Chief Investment Officer,
to Join Blend’s Board
Blend Labs, Inc. (NYSE: BLND), (“Blend” or the “Company”), a
leading provider of cloud banking services, and Haveli Investments
(“Haveli”), a technology-focused private equity firm, today
announced a $150 million investment in the Company by Haveli
Investments in the form of convertible preferred stock with a zero
percent coupon. Blend will use approximately $145 million of the
proceeds to repay all amounts payable under its existing credit
agreement, and the remainder for general corporate purposes. This
investment further strengthens Blend’s financial position and
balance sheet for long-term growth and value creation.
“This partnership with Haveli reflects confidence in Blend’s
continued journey to transform financial services and is an
important show of faith in our growth strategy,” said Nima
Ghamsari, Co-founder and Head of Blend. “We look forward to working
with Haveli to advance our goal of driving innovation in the space
and delivering lasting value for our customers and
shareholders.”
“We are pleased to announce our partnership with Blend, a market
leader in both Mortgage and Consumer Banking software for banks,
credit unions, and other lending institutions,” said Brian Sheth,
Chief Investment Officer of Haveli Investments. “We have known the
Blend team for several years and have been impressed with their
innovation and vision. With a blue-chip customer base and an
improved balance sheet, we believe Blend is well positioned to
succeed with its modern, next-gen platform. We’re excited to start
this partnership, and we believe that we can work together with
Blend to increase long-term value for all shareholders, customers,
employees, and other key stakeholders.”
In connection with the investment, Mr. Sheth will join Blend’s
Board of Directors.
Investment Terms
Haveli Investments purchased $150 million of Series A
convertible preferred stock. The Series A preferred stock will be
convertible into shares of Blend’s Class A common stock at an
initial conversion price of $3.25 per share, representing a 31%
premium to the closing price on April 26, 2024 and a 13% premium to
the volume-weighted average closing price over the 30-day period
ending on the same date.
The preferred stock can be converted into Class A common stock
at any time. Further, Haveli may require the Company to repurchase
the preferred stock after five years and Blend may redeem the
preferred stock after seven years.
Blend issued Haveli a warrant to purchase approximately 11
million shares of Class A common stock, at a purchase price of
$4.50 per share, representing an 81% premium to the closing price
of April 26, 2024 and a 57% premium to the volume-weighted average
closing price over the 30-day period ending on the same date. The
warrant represents a total consideration of up to $50 million and
is exercisable for a period of 24 months.
Webcast Information
On Monday, April 29, 2024 at 6:00 pm ET, Blend will host a live
webcast to provide more information on this investment. A link to
the discussion will be made available on the Company's investor
relations website at https://investor.blend.com. A replay will also
be made available following the discussion at the same website.
In addition, the Company will host an earnings conference call
on Wednesday, May 8, 2024, at 4:30 pm ET to discuss its first
quarter 2024 financial results. A link to the live discussion will
be made available at https://investor.blend.com.
Advisors
Financial Technology Partners (FT Partners) served as financial
and strategic advisor to Blend. Wilson Sonsini Goodrich &
Rosati, P.C. served as legal advisor to Blend.
Jefferies LLC served as financial advisor to Haveli. Bailey
Duquette P.C. served as legal advisor to Haveli.
About Blend
Blend (NYSE:BLND) is the infrastructure powering the future of
banking. Financial providers—from large banks, fintechs, and credit
unions to community and independent mortgage banks—use Blend’s
platform to transform banking experiences for their customers.
Blend powers billions of dollars in financial transactions every
day. To learn more, visit blend.com.
About Haveli Investments
Haveli Investments is an Austin-based private equity firm that
seeks to invest in the highest quality companies in the technology
sector through control, minority or structured equity and debt
investments with a focus on software, data, gaming and adjacent
industries. The firm partners with innovative companies,
entrepreneurs and management teams throughout a company’s life
cycle. Haveli’s experienced team of investors and diverse industry
experts will provide operational and strategic support, enabling
portfolio companies to focus on driving innovation and increasing
growth, scale and operating margins. Underscoring Haveli’s
investments is an unwavering focus on DEI and sustainability. For
more information, please visit www.haveliinvestments.com, or follow
Haveli on LinkedIn, @Haveli Investments.
Haveli, Haveli Investments, the Haveli logos and related names
are registered trademarks or service marks of Whanau Interests LLC.
All rights reserved.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements may relate to, but are not limited to,
quotations of management and others; Blend’s expectations regarding
its financial condition and operating performance, including growth
opportunities and plans for future operations and competitive
position; Blend’s products, pipeline, and technologies; Blend’s
strategies for growth; the impact of the Haveli investment on
Blend’s financial position; Blend’s ability to create long-term
shareholder value; and Blend’s expectations for changes in revenue,
as well as assumptions relating to the foregoing. Forward-looking
statements are inherently subject to risks and uncertainties, some
of which cannot be predicted or quantified. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“will,” “should,” “expect,” “plan,” “anticipate,” “could,” “would,”
“intend,” “target,” “project,” “contemplate,” “believe,”
“estimate,” “predict,” “potential” or “continue” or the negative of
these terms or other comparable terminology that concern Blend’s
expectations, strategy, plans or intentions. You should not put
undue reliance on any forward-looking statements. Forward-looking
statements should not be read as a guarantee of future performance
or results and will not necessarily be accurate indications of the
times at, or by which such performance or results will be achieved,
if at all.
Forward-looking statements are based on information available at
the time those statements are made and/or management’s good faith
beliefs and assumptions as of that time with respect to future
events and are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in or suggested by the forward-looking statements. These
risks and uncertainties include the risks that: changes in economic
conditions, such as mortgage interest rates, credit availability,
real estate prices, inflation or consumer confidence, adversely
affect our industry, markets and business, we fail to retain our
existing customers or to acquire new customers in a cost-effective
manner; our customers fail to maintain their utilization of our
products and services; our relationships with any of our key
customers were to be terminated or the level of business with them
significantly reduced over time; we are unable to compete in highly
competitive markets; we are unable to manage our growth; we are
unable to make accurate predictions about our future performance
due to our limited operating history in an evolving industry and
evolving markets; we are unable to successfully integrate or
realize the benefits of our acquisition of Title365; our
restructuring actions do not result in the desired outcomes or
adversely affect our business, impairment charges on certain assets
have an adverse effect on our financial condition and results of
operations; Blend’s expectations regarding the investment and its
impact do not materialize; we are unable to generate sufficient
cash flows or otherwise maintain sufficient liquidity to fund our
operations and satisfy our liabilities. Further information on
these risks and other factors that could affect our financial
results are set forth in our filings with the Securities and
Exchange Commission, including in our Annual Report on Form 10-K
for the year ended December 31, 2023. In light of these risks and
uncertainties, the forward-looking events and circumstances
discussed in this press release may not occur and actual results
could differ materially from those anticipated or implied in the
forward-looking statements. These factors could cause actual
results, performance, or achievement to differ materially and
adversely from those anticipated or implied in the forward-looking
statements. Moreover, we operate in a very competitive and rapidly
changing environment. New risks and uncertainties emerge from time
to time, and it is not possible for us to predict all risks and
uncertainties that could have an impact on the forward-looking
statements contained in this press release. Except as required by
law, Blend does not undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future developments, or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240429786929/en/
Blend Contacts: Investor Relations ir@blend.com
Media press@blend.com Haveli Investments Contacts:
Investor Relations Caroline Bal Doherty Haveli Investments SVP
of Capital Partnerships cdoherty@havelii.com Media Hugh
Burns/Pamela Greene Reevemark (212) 433-4600
HaveliTeam@Reevemark.com
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