Seattle-based real estate tech company Redfin Corp. (Nasdaq: RDFN) has drawn down the remaining $125 million of a loan from private equity firm Apollo Capital Management.
Redfin disclosed the move in a Monday regulatory filing, saying it could use the money to repurchase convertible notes, pay fees or general corporate purposes, among other uses. The company didn't immediately respond to a request for more details.
Redfin in October secured the $250 million first lien term loan facility from Apollo, when it borrowed the first $125 million. The company had the option to draw the remaining half over the next year. First lien debt holders get paid back before other debt holders, meaning they are first in line if a company can't make its payments or files for bankruptcy.
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Redfin, launched in 2006, offers brokered listings, a home search tool, mortgages and a service for high-end homes called Redfin Premier. The company started listing rentals in 2022 after acquiring Atlanta-based RentPath in 2021 for $608 million.
In recent years, however, Redfin has gone through multiple rounds of layoffs as rising interest rates and decreased homebuying demand have punished the housing market. In 2022, Redfin shuttered its home-flipping business RedfinNow, which was used to buy homes, renovate them and sell them for a profit.
In May, Redfin paid $9.25 million to settle a class-action lawsuit that centered on home sellers having to pay blanket commissions to buyers' agents. Redfin generated $225.5 million in revenue during the first quarter, up from $214.1 million during the first quarter of last year.
New York City-based Apollo, which was founded in 1990, had $671 billion in assets under management as of the first quarter. The company also has a retirement services business called Athene.
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