FOA - Finance of America to sell its commercial lending business to Roc Capital

• Finance of America ( NYSE: FOA ) said Monday it agreed to sel l its commercial lending business, Finance of America Commercial, to Roc Capital Holdings, a digital platform for residential real estate investors.
• Under the agreement, Roc Capital will pay up to $30M over a three-year period, primarily calculated as an earnout payment based on the performance of the purchased assets.
• FOA interim CEO Graham A. Fleming said the agreement is another step to execute its long-term strategy. "By streamlining our focus and growing our core businesses, which benefit from a shared set of demographic and economic tailwinds, FOA ( FOA ) can more effectively dispatch our innovative suite of solutions to help Americans achieve their retirement goals through the use of home equity," he said.
• The transaction does not include FOA Commercial's financial assets comprised of loans and securitization assets, which will continue to be sold or paid in full or liquidated in the course of business, FOA ( FOA ) said.
• Credit Suisse ( CS ) acted as financial adviser to FOA ( FOA ) for the deal.
• In December, Finance of America ( FOA ) stock surged after it agreed to acquire the assets of reverse mortgage lender American Advisors.

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