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OCBJ INSIDER

LoanDepot is a public company, and a large one at that, some six years after Anthony Hsieh first attempted to take his Foothill Ranch-based non-bank mortgage lender (NYSE: LDI) to Wall Street.

The company’s Feb. 11 IPO clearly didn’t go as expected.
 
Its shares were first priced at $19 to $21, and the company planned to sell 17M shares, raising about $340M in proceeds.

The IPO was significantly scaled back, though, and went out at $14 with only 3.9M shares sold, raising around $54 million in proceeds—not quite enough to pay for Hsieh’s record-setting ($61 million) new home in Crystal Cove.

A slimmer IPO attracted interest, though; its shares were trading at $25 late last week, valuing the company around $8 billion. It’s now OC’s sixth-largest public company by market value.

The IPO “gives us the best of both worlds, and significantly benefits loanDepot,” Hsieh told employees. “We are now a public company, and it also means that our existing management team and I will continue to be the majority shareholders.”

Hsieh still owns nearly 39% of the company’s Class A shares, which are worth about $3.2 billion—more than enough to buy a few more homes along the coast.

Speaking Too Soon, Pt. 1: Last week’s print edition noted CoreLogic CEO Frank Martell has “gotten his price” for the provider of real estate and insurance data (NYSE: CLGX), after his firm accepted a $6 billion cash offer—$80 a share—from a pair of PE firms, double the company’s value in mid-2020.
Terms of the Feb. 4 approved deal was news to CoStar Group Inc., which also had been in discussions to buy CoreLogic at a higher, albeit all-stock, price of $86.30.

“We were stunned to read about the acquisition of CoreLogic” at a price that’s “materially less,” CoStar Chief Executive Andrew Florance said last week.
CoStar (Nasdaq: CSGP) last week put in another all-stock offer, at $95.76 a share, valuing CoreLogic at $7.2 billion.

Martell’s stake in CoreLogic was worth about $50 million under the $80 a share deal, regulatory filings indicate. They could go up to $60 million or so if he accepts CoStar and its all-share offer.
Not quite enough to buy Hsieh’s home, but close.

For a rundown of OC’s top luxury home sales in 2020, see our March 8 print edition.

Speaking Too Soon, Part 2: Last week’s Insider noted the good month of fortune for Newport Beach sports agent Leigh Steinberg, whose star client is Kansas City Chiefs QB Patrick Mahomes.

The month has gotten better for the agent that inspired the Jerry Maguire movie character.
Billionaire Ron Burkle’s Yucaipa Cos. of Los Angeles last week said it had taken a significant equity stake in Steinberg Sports and Entertainment, a deal which should allow the firm run by Steinberg and partner Chris Cabott to ramp up its content production, marketing operations and business development.

Burkle, whose local ties include a prior ownership of Golden State Foods, joins the firm as a partner; see next week’s print edition for more on the transaction.

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Mark Mueller
Mark Mueller
Mark is the Editor-in-Chief of the Orange County Business Journal, one of the premier regional business newspapers in the country. He’s the fifth person to hold the editor’s position in the paper’s long history. He oversees a staff of about 15 people. The OCBJ is considered a must-read for area business executives. The print edition of the paper is the primary source of local news for most of the Business Journal’s subscribers, which includes most of OC’s major corporate and community players. Mark’s been with the paper since 2005, and long served as the real estate reporter for the paper, breaking hundreds of commercial and residential real estate stories. He took on the editor’s position in 2018.
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