Figure Technology Solutions prices $600M senior notes at 8.5%

Figure Technology Solutions (FIGR) priced $600 million of 8.500% senior notes due 2031, the company said Thursday. The offering is the fintech firm’s largest debt placement this year and will help fund its acquisition of real estate lender Kiavi along with general corporate purposes.

The notes mature on July 15, 2031 and pay interest semiannually on January 15 and July 15, starting January 15, 2026. Figure said the notes are being offered in a private placement to qualified institutional buyers. The deal is expected to close shortly, subject to customary conditions.

Figure announced the acquisition of Kiavi in April for roughly $1.2 billion in cash and stock. Kiavi, a platform that provides short-term bridge loans to real estate investors, expands Figure’s foothold in the residential lending market. Figure already operates a home equity line of credit business and a blockchain-based loan origination system.

The debt raise bolsters Figure’s balance sheet at a time when the company is scaling its lending operations and investing in technology. The 8.5% coupon is relatively high for an investment-grade borrower – Figure is rated B2 by Moody’s and B by S&P – reflecting the company’s leverage and the risk of its mortgage-focused portfolio.

Proceeds from the offering will also refinance a portion of Figure’s existing debt, the company said. The notes are senior unsecured and rank equally with Figure’s other senior unsecured obligations.

Figure shares have rallied more than 30% this year, partly on optimism around the Kiavi acquisition and the company’s move into a broader set of lending products. The debt offering gives the company financial flexibility as it integrates Kiavi and looks for further growth in a higher-rate environment.