Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

Agreement to Acquire Bay Equity—On January 10, 2022, we and Ruby Merger Sub LLC ("Merger Sub"), one of our wholly owned subsidiaries, entered into a merger agreement to acquire Bay Equity LLC (“Bay Equity”). Pursuant to the merger agreement, Merger Sub will merge with and into BE Holdings, LLC ("BE Holdings"), which owns all of the equity interests of Bay Equity, and BE Holdings will continue as the surviving entity and become a wholly owned subsidiary of Redfin as of the closing of the acquisition. Bay Equity is a national, full-service mortgage lender.

The purchase price for the acquisition will be a $72,500 premium to BE Holdings’s tangible book value as of the closing date (the “Purchase Price”). Based on Bay Equity' estimated tangible book value as of December 31, 2021, the purchase price would have been $135,000 if we closed the acquisition on December 31, 2021. After deducting certain transaction expenses from the Purchase Price (such resulting amount, the “Merger Consideration”), we will pay two-thirds of the Merger Consideration in cash and one-third of the Merger Consideration in shares of our common stock, subject to certain adjustments contemplated by the Merger Agreement.

The closing is subject to customary conditions, including (i) the absence of any court or regulatory order prohibiting the closing, (ii) the attainment of certain regulatory approvals and of consents from certain contractual counterparties, and (iii) agreement of certain Bay Equity executives, loan officers, and other employees to continue their employment with Bay Equity after the closing.

Amendment of Secured Revolving Credit Facility—On February 9, 2022, we increased the borrowing capacity of our secured revolving credit facility to $400,000 and extended its maturity date to August 9, 2023.