4//SEC Filing
TOBI III SPE I LLC 4
Accession 0000904454-20-000318
CIK 0001692376other
Filed
Apr 6, 8:00 PM ET
Accepted
Apr 7, 7:24 PM ET
Size
16.0 KB
Accession
0000904454-20-000318
Insider Transaction Report
Form 4
TOBI III SPE I LLC
Director10% Owner
Transactions
- Award
Warrant (right to buy)
2020-04-05+1,673,958→ 1,673,958 total→ Common Stock (1,673,958 underlying) - Award
Series A Convertible Preferred Stock
2020-04-05+25,000→ 25,000 totalExercise: $3.85→ Common Stock (6,493,506 underlying)
Holdings
- 4,470,300
Common Stock
PACIFIC INVESTMENT MANAGEMENT CO LLC
Director10% Owner
Transactions
- Award
Series A Convertible Preferred Stock
2020-04-05+25,000→ 25,000 totalExercise: $3.85→ Common Stock (6,493,506 underlying) - Award
Warrant (right to buy)
2020-04-05+1,673,958→ 1,673,958 total→ Common Stock (1,673,958 underlying)
Holdings
- 4,470,300
Common Stock
LVS III Holding LP
Director10% Owner
Transactions
- Award
Series A Convertible Preferred Stock
2020-04-05+25,000→ 25,000 totalExercise: $3.85→ Common Stock (6,493,506 underlying) - Award
Warrant (right to buy)
2020-04-05+1,673,958→ 1,673,958 total→ Common Stock (1,673,958 underlying)
Holdings
- 4,470,300
Common Stock
Footnotes (5)
- [F1]TOBI III SPE I LLC, a Delaware limited liability company ("TOBI"), is the direct holder of the Issuer's securities. TOBI was formed solely for the purpose of investing in the Issuer. LVS III Holding LP, a Delaware limited partnership ("LVS"), is the sole member of TOBI and operates as a pooled investment fund and invests (among other things) in operating companies. PIMCO GP XVII, LLC, a Delaware limited liability company ("PIMCO GP"), is the sole general partner of LVS. Pacific Investment Management Company LLC is the sole managing member of PIMCO GP, retains a pecuniary interest therein, and has the power to make voting and investment decisions regarding the securities of the Issuer held by TOBI. The signatory below executes this Form 4 on behalf of each Reporting Person as an Executive Vice President of PIMCO.
- [F2]On April 5, 2020, the Issuer and TOBI entered in to a securities purchase agreement (the "Securities Purchase Agreement") pursuant to which TOBI acquired from the Issuer in a private placement: (i) 25,000 shares of the Issuer's Series A Convertible Preferred Stock, par value $0.01 per share (the "Series A Preferred Stock"); and (ii) warrants to purchase an aggregate of 1,673,958 shares of the Issuer's Common Stock (the "Warrants"). The aggregate subscription amount paid by TOBI for the Series A Convertible Preferred Stock and Warrants acquired by it pursuant to the Securities Purchase Agreement was $25,000,000.
- [F3]The Series A Preferred Stock is not convertible and the Warrants are not exercisable until the Issuer obtains stockholder approval as required by applicable NYSE rules ("Stockholder Approval"). After the Issuer obtains Stockholder Approval, the Series A Preferred Stock is convertible into, with respect to each share of Series A Preferred Stock so converted, the number of shares of Common Stock equal to then applicable conversion rate (plus cash in lieu of fractional shares, if any) at any time, in whole or in part, at the option of TOBI (or a permitted transferee) at an initial conversion price of $3.85 per share of Common Stock. The initial conversion rate for the Series A Preferred Stock is 259.74, and is subject to customary antidilution adjustments.
- [F4](Continued from Footnote 3) In addition, the Series A Preferred Stock is subject to conversion at the option of the Issuer after October 7, 2021 in accordance with the terms thereof. The Series A Preferred Stock is also subject to repurchase, at the option of TOBI (or a permitted transferee), in accordance with the terms thereof. The Series A Preferred Stock has no expiration date.
- [F5]After the Issuer obtains Stockholder Approval, the Warrants are exercisable at the warrantholder's option at any time, in whole or in part, through April 7, 2025, at an exercise price of $2.96 per share of Common Stock, with respect to two-thirds of the Warrants (or the right to purchase 1,115,972 shares of Common Stock), and at an exercise price of $4.94 per share of Common Stock, with respect to the other one-third of the Warrants (or the right to purchase 557,986 shares of Common Stock). The exercise price and the number of shares of Common Stock issuable upon exercise of the Warrants are subject to customary antidilution adjustments. The Issuer is not required to effect an exercise of Warrants, if after giving effect to the issuance of Common Stock upon exercise of such Warrants, such warrantholder together with its affiliates would beneficially own 49% or more of the Issuer's outstanding Common Stock.
Documents
Issuer
Velocity Financial, Inc.
CIK 0001692376
Entity typeother
IncorporatedDE
Related Parties
1- filerCIK 0001792715
Filing Metadata
- Form type
- 4
- Filed
- Apr 6, 8:00 PM ET
- Accepted
- Apr 7, 7:24 PM ET
- Size
- 16.0 KB