Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Private Placement—On April 1, 2020, we issued 4,484,305 shares of our common stock, at a price of $15.61 per share, and 40,000 shares of our preferred stock, at a price of $1,000 per share, for aggregate gross proceeds of $110,000. We designated this preferred stock as Series A Convertible Preferred Stock, which we refer to as our convertible preferred stock.

Workforce Reduction—In April 2020, we reduced our number of employees by approximately 400 people, which represented approximately ten percent of our employees. As a result of this workforce reduction, we incurred a pre-tax charge for one-time termination costs, which consisted of severance and related costs, of $4,400 in April 2020. We additionally placed approximately 1,000 employees on furlough, of which approximately 135 were invited to return in early May. As of the effective date of any furlough, we provided transition pay to each employee, resulting in a pre-tax charge of approximately $1,000. In addition, for any furloughed employee enrolled in our health-care benefit plans, we will continue to provide benefits through the duration of the furlough.

Flagstar Warehouse Credit Facility—On April 20, 2020, Redfin Mortgage temporarily increased the borrowing capacity under its warehouse credit facility with Flagstar to $24,500 through May 31, 2020.

Texas Capital Warehouse Credit Facility—On May 4, 2020, Redfin Mortgage extended the expiration date of its warehouse credit facility with Texas Capital to June 5, 2020.