Which Notes are subject to this prepayment?
10 Year Anniversary Note — 9/30/24
10 Year Anniversary Note — 10/31/24
10 Year Anniversary Note — 11/30/24
$25K Min — 9/30/24 Note
$25K Min — 10/31/24 Note
$25K Min — 11/30/24 Note
$25K Min — 12/31/24 Note
Why are we taking this action?
Demand for LROs has been strong and continues to grow in 2024, driven by demand for our new Auto Investor mobile app and strong recycling of repaid LROs into new investments. Due to the strength of LRO sales, we now have an excess of lending capital relative to our near-term needs. We are choosing to exercise our right of prepayment, as per the terms of our Notes, in order to reduce the working capital cost of carrying that excess lending capital.
Why are you returning this capital as opposed to deploying it?
We are committed to sustainable growth and maintaining high underwriting standards. Our analysis of market conditions and internal capacity indicates that choosing to grow faster for the purpose of putting more capital to work would add risk to investors’ assets, without sufficiently compensating them for it.
Will I receive additional compensation for the early repayment?
No. The Groundfloor Notes investment agreement acknowledges that a repayment can be made at any time prior to the expiration of the Note. The last interest payment will be made at the same time as the note repayment on May 31st.
What does this mean for Groundfloor’s future?
Groundfloor is continuing to pursue profitable growth and long-term value creation for shareholders and investors on the Groundfloor platform alike, and this action is consistent with and appropriate in keeping with that objective.
Will there be future opportunities to invest in Notes at the same rate of return?
We are continuing to offer Groundfloor Notes on our platform. Notes currently funding offer interest rates ranging from 5.75% to 7.5%. The rates and terms of future offerings will depend on many factors, including interest rates in the economy and the balance of supply and demand for capital on our platform. To learn more about what Notes are available currently, log into your account > Invest (Top of the Page) > Notes.
Why are you providing this advanced notice?
We are providing this advance notice to give our investors the opportunity to evaluate investment options prior to the repayment being processed.
What will the early repayment look like in my Transaction History?
Once you log into your account, click on the blue box in the top right corner > Investment Activity > Transactions. Please be mindful that the repayment and last interest payment will be paid out on May 31. All other interest payments were already made. To confirm the interest payments, keep an eye on the “Category” as a Note.