Form 4: loanDepot Insider Anthony Hsieh Executes Stock and Unit Exchange

Anthony Hsieh, a director and 10% owner of loanDepot, executed a transaction involving the exchange of Common Units for Class A Common Stock and cancellation of corresponding Class C Common Stock.

Summary

• On October 17, 2024, Anthony Hsieh, a director and 10% owner of loanDepot, engaged in transactions involving Class A and Class C Common Stock, as well as Common Units of LD Holdings Group LLC.
• Hsieh, through Trilogy Mortgage Holdings, Inc., exchanged 5,000,000 Common Units for 5,000,000 shares of Class A Common Stock.
• The corresponding 5,000,000 shares of Class C Common Stock were cancelled for no consideration.
• Following the transaction, Hsieh indirectly owns 43,945,633 shares of Class C Common Stock through Trilogy Mortgage Holdings, Inc.
• Hsieh also indirectly owns 7,927,686 shares of Class A Common Stock through JLSSAA Trust.
• The filing also reflects indirect ownership of Class C Common Stock through JLSA, LLC (4,310,497 shares) and Trilogy Management Investors Six, LLC (66,404,880 shares).
• An administrative reconciliation reduced the balance of Common Units and Class C Common Stock held by Trilogy Management Investors Six, LLC by 19,457.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing insider transactions. It doesn't inherently convey positive or negative sentiment, but rather reports factual changes in ownership.

Industry Context

This filing reflects insider activity related to loanDepot's capital structure, which is common for companies with complex ownership structures following an IPO. The exchange mechanism between Common Units and Class A Common Stock is typical in companies with an Up-C structure.

Comparison to Industry Standards

• The Up-C structure, where operating company units can be exchanged for public company shares, is used by companies like GoDaddy and Planet Fitness.
• The one-for-one exchange ratio of Common Units to Class A Common Stock is a standard feature of Up-C structures.
• Insider transactions are regularly monitored and reported via SEC Form 4 filings, a common practice across all publicly traded companies.

Stakeholder Impact

• The transaction may have a minor impact on shareholders due to the change in the number of outstanding Class A shares.
• The exchange mechanism ensures alignment between the interests of LD Holdings unit holders and loanDepot shareholders.

Key Dates