NEW YORK, Dec. 9, 2016 /PRNewswire/ -- OnDeck®
(NYSE:ONDK), the leader in online lending for small business,
announced today the closing of a $200
million asset-backed revolving debt facility with Credit
Suisse.
In addition to its other funding sources, OnDeck may now obtain
funding under the new credit facility with Credit Suisse, subject
to customary borrowing conditions, by accessing $125 million of committed capacity and an
additional $75 million of capacity
available at the discretion of the lenders.
"OnDeck has emerged as a leading provider of growth capital to
small businesses around the country," said Jon-Claude Zucconi, Managing Director, Credit
Suisse. "The team's innovative vision and commitment to financing
is vital to expansion and growth in the small business
community."
Under the facility, loans will be made to Prime OnDeck
Receivable Trust II, LLC, or PORT II, a wholly-owned subsidiary of
OnDeck, to finance PORT II's purchase of small business loans from
OnDeck. The revolving pool of small business loans purchased by
PORT II serves as collateral under the facility. OnDeck is
acting as the servicer for such small business loans. The Class A
Loans under the facility were rated by DBRS, Inc.
OnDeck intends to initially use a portion of this facility,
together with other available funds, to optionally prepay in full
without penalty or premium, the existing $100 million Prime OnDeck Receivable Trust, LLC
facility which was scheduled to expire in June 2017. As a
result, OnDeck will benefit from obtaining additional funding
capacity through December 2018.
"This transaction marks a continuation of our financing strategy
to diversify funding sources, extend debt maturities, and create
additional funding capacity to pave the way for future loan
growth," said Howard Katzenberg, Chief Financial Officer,
OnDeck. "We are pleased to have Credit Suisse, a leading global
financial institution, support OnDeck in our mission to power the
growth of small business through lending technology and
innovation."
About OnDeck
OnDeck (NYSE: ONDK) is the leader in online small business
lending. Since 2007, the company has powered Main Street's growth
through advanced lending technology and a constant dedication to
customer service. OnDeck's proprietary credit scoring system –
the OnDeck Score® – leverages advanced analytics, enabling
OnDeck to make real-time lending decisions and deliver capital to
small businesses in as little as 24 hours. OnDeck offers business
owners a complete financing solution, including the online lending
industry's widest range of term loans and lines of credit. To date,
the company has deployed over $5 billion to more than
60,000 customers in 700 different industries across the United
States, Canada, and Australia. OnDeck has an A+
rating with the Better Business Bureau and operates the educational
small business financing website BusinessLoans.com.
For more information, please visit www.ondeck.com.
About Credit Ratings
Credit ratings are opinions of the relevant rating agency. They
are not facts and are not opinions of OnDeck. They are not
recommendations to purchase, sell or hold any securities and can be
changed or withdrawn at any time.
Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of the private Securities Litigation Reform Act of 1995
and other legal authority. Forward-looking statements include
statements about the intended use of proceeds from the new facility
and expected optional repayment in full of the existing facility,
the extension of debt maturities and the availability of additional
funding capacity, all of which are dependent upon compliance
with the borrowing and other conditions of the new facility, as
well as information concerning OnDeck's business plans and
objectives and financing plans including future loan growth.
Forward-looking statements can also be identified by words such as
"will," "enables," "expects", "may," "allows," "continues,"
"believes," "intends," "anticipates," "estimates" or similar
expressions. Forward-looking statements are neither historical
facts nor assurances of future performance. They are based only on
OnDeck's current beliefs, expectations and assumptions regarding
the future of its business, anticipated events and trends, the
economy and other future conditions. Moreover, OnDeck does not
assume responsibility for the accuracy and completeness of
forward-looking statements. As such, they are subject to inherent
uncertainties, changes in circumstances, known and unknown risks
and other factors that are difficult to predict and in many cases
outside OnDeck's control.
As a result, you should not rely on any forward-looking
statements. OnDeck's expected results may not be achieved, and
actual results may differ materially from OnDeck's expectations.
Important factors that could cause actual results to differ from
OnDeck's forward-looking statements are the risks that OnDeck may
not be able to manage its anticipated or actual growth effectively,
that its credit models do not adequately identify potential risks,
and other risks, including those under the heading "Risk Factors"
in OnDeck's Annual Report on Form 10-K for the year ended
December 31, 2015, Quarterly Report
on Form 10-Q for the quarter ended September
30, 2016 and in other documents that OnDeck files with the
Securities and Exchange Commission, or SEC, from time to time which
are available on the SEC website at www.sec.gov. OnDeck undertakes
no obligation to publicly update any forward-looking statements for
any reason after the date of this press release to conform these
statements to actual results or to changes in OnDeck's
expectations, except as required by law.
OnDeck, the OnDeck logo and OnDeck Score are
trademarks of On Deck Capital, Inc.
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SOURCE On Deck Capital, Inc.