NEW YORK, April 19, 2018 /PRNewswire/ -- OnDeck®
(NYSE:ONDK), the leader in online lending for small business,
announced today the closing of a $100
million asset-backed revolving credit facility with Pioneers
Gate LLC, a lending vehicle of a leading life insurance company
managed by 20 Gates Management. The new facility provides the
longest revolving funding period of any of OnDeck's funding
sources, and the lowest interest margin of any of OnDeck's
variable-rate funding facilities to date. In addition to providing
financing for OnDeck's term loans, a portion of the facility may be
used to finance OnDeck's revolving lines of credit. Certain other
details are reflected below:
|
|
Commitment
Amount:
|
$100
million
|
Interest
Rate:
|
1 Month LIBOR +
2.00%
|
Advance
Rate:
|
84.5%
|
Revolving Funding
Period:
|
4 years
|
Maturity
Date:
|
October 13,
2022
|
"We are excited to complete yet another milestone transaction
that increases our funding flexibility while reducing costs," said
Ken Brause, Chief Financial Officer,
OnDeck. "We are pleased that Pioneers Gate has chosen to support
OnDeck and our mission of empowering the growth of small business
through lending technology and innovation."
Under the facility, loans will be made to a wholly-owned
subsidiary of OnDeck, which will purchase small business loans from
OnDeck. This revolving pool of small business loans will serve as
collateral under the facility. OnDeck is acting as the servicer for
these loans.
"We are delighted to announce further progress on executing our
funding strategy on the heels of closing our most recent
securitization," said Ron Elimelekh, Head of Capital Markets,
OnDeck. "This credit facility provides OnDeck with long-term
committed funding to support future loan growth. Securing the
flexibility to obtain funding on a revolving basis for the next
four years at an attractive cost of funds while continuing to
diversify our funding sources is another great step forward for
OnDeck."
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 $8
billion to more than 80,000 customers in 700 different
industries across the United
States, Canada and
Australia. For more information,
please visit www.ondeck.com.
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 can be identified by words such as
"proposed," "will," "enables," "expects," "allows," "continues,"
"believes," "anticipates," "estimates" or similar expressions.
These include statements regarding possible future loan growth as a
result of entering into the new facility or otherwise.
Forward-looking statements are neither historical facts nor
assurances of future performance. They are based only on our
current beliefs, expectations and assumptions regarding the future
of our business, anticipated events and trends, the economy and
other future conditions. As such, they are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict and in many cases outside our control.
Therefore, you should not rely on any of these forward-looking
statements. Our expected results may not be achieved, and
actual results may differ materially from our expectations. Factors
that could cause or contribute to actual results differing from our
forward-looking statements include risks relating to: our ability
to meet borrowing conditions and remain in compliance with all the
provisions of the new facility; changes in the financial markets,
including changes in credit markets and interest rates; adverse
developments regarding OnDeck, its business or the online or
broader marketplace lending industry generally; and other risks,
including those described in our Annual Report on Form 10-K for the
year ended December 31, 2017 and in
other documents that we file with the Securities and Exchange
Commission from time to time which are or will be available on
the Commission's website at www.sec.gov. Except as required by law,
we undertake no duty to update the information in this press
release.
Investor Contact:
Scott Reynolds
(646) 668-3551
sreynolds@ondeck.com
Media Contact:
Jim Larkin
(203) 526-7457
jlarkin@ondeck.com
OnDeck, the OnDeck logo, OnDeck Score and OnDeck
Marketplace are trademarks of On Deck Capital, Inc.
View original content with
multimedia:http://www.prnewswire.com/news-releases/ondeck-announces-new-100-million-revolving-credit-facility-300633369.html
SOURCE On Deck Capital, Inc.