MortgageOrigination extends deadline to go public via SPAC

Digital lender and Aurora Acquisition Corp. have started to discuss alternatives in case the deal fails

Digital mortgage lender and blank-check firm Aurora Acquisition Corp. extended the deadline to conclude their merger agreement, but the companies have already started to discuss options in case the deal fails. 

In May 2021, Novator Capital-sponsored special purpose acquisition company Aurora announced plans to make public in the fourth quarter of 2021. The deal valued the SoftBank Group-backed digital lender at nearly $8 billion.

However, amid a shrinking mortgage market, Aurora and announced on Monday a second extension to the merger agreement end date, from Sept. 30, 2022, to March 8, 2023. The initial deadline was Feb. 12, 2022.

Due to the extension, will reimburse Aurora a sum not to exceed $15 million for certain reasonable and documented expenses, according to a filing with the Securities and Exchange Commission (SEC). 

The filing shows, for the first time, that the companies are studying alternatives to the merger.

“Aurora strongly believes in Better and supports its market strategy,” the document says. However, “Aurora and Better are in discussions regarding alternative financing arrangements for Better pursuant to which the merger agreement and related transactions would be terminated and Better would remain a private company.” is reducing expenses and looking for new financing alternatives in the most challenging mortgage market in over a decade. 

Last year, received a cash injection of $750 million from financial backer Softbank and entered into an agreement to issue $750 million of bridge notes convertible to Class A common stock of Aurora, in connection with the closing of the business combination, to SB Northstar LP and Novator. 

The new SEC filing, however, shows that and Aurora also extended from Dec. 2, 2022, to March 8, 2023, the maturity date of $100 million from the bridge notes issued by to Novator Capital, subject to SB Northstar consent to extend their deadline as well. 

“We are considering all capitalization options so that we can continue to make homeownership simpler, faster – and most importantly, more accessible for all Americans,” a spokesperson for told HousingWire.  

The company is also cutting costs. Last week, conducted its fourth workforce reduction since December 2021, when the company’s Chief Executive Officer Vishal Garg gained infamy for laying off 900 employees in a Zoom meeting. On March 8, Better cut 3,000 jobs, roughly 35% of its staff in the United States and India. The company instituted its third major layoff on April 19. reported a $221 million loss in the first quarter of 2022, compared to a $137.5 million profit during the same period in 2021.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please