NEW YORK, May 25, 2017 /PRNewswire/ -- OnDeck® (NYSE:ONDK),
the leader in online lending for small business, announced today
that it had extended its current asset-backed revolving credit
facility with SunTrust Bank.
As a result of the transaction, OnDeck extended the maturity
date of its $100 million credit
facility with SunTrust Bank to November
2018 and decreased funding cost by 50 basis
points.
"This transaction exemplifies our commitment to our relationship
with OnDeck," said Tarun Mehta,
Group Head for Financial Institutions Investment Banking, SunTrust
Robinson Humphrey. "OnDeck is a leading provider of innovative
financing solutions to the small business community enabling small
businesses to grow, and we are pleased to support the OnDeck team
in this important endeavor."
Loans will continue to be made to Receivable Assets of OnDeck,
LLC, or RAOD, a wholly-owned subsidiary of OnDeck, to finance
RAOD's purchase of small business loans from OnDeck. The revolving
pool of small business loans purchased by RAOD serves as collateral
under the SunTrust facility. OnDeck is acting as the servicer
for those small business loans.
"In the first months of 2017, OnDeck has demonstrated its
ability to execute on its financing strategy by extending debt
maturities and creating additional funding capacity to pave the way
for future loan growth and this transaction is yet another
example," said Howard Katzenberg,
Chief Financial Officer, OnDeck. "SunTrust, a leading national
financial intuition, has been, and will now continue to be, our
valued partner in support of our mission to empower small
businesses to grow into thriving enterprises through OnDeck's
lending technology and innovation."
Mr. Katzenberg further noted "We believe that this transaction,
along with the recent closing of a Aus$22.5M credit facility to
finance small business loans originated by our Australian
subsidiary, further exemplifies the strength of OnDeck's capital
position and liquidity outlook."
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 $6 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.
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 regarding the extension of debt maturities, the
availability of additional funding capacity and OnDeck's liquidity
outlook, all of which are dependent upon compliance with the
borrowing and other conditions of the amended facility and other
debt facilities and market conditions and statements regarding
OnDeck's business plans, objectives and expected future loan
growth, which are all subject to material uncertainties including
credit risks, pricing risks and economic conditions.
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, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ondeck-announces-extension-of-100-million-credit-facility-with-suntrust-bank-300463884.html
SOURCE On Deck Capital, Inc.