NEW YORK, July 18, 2018 /PRNewswire/ -- OnDeck®
(NYSE:ONDK), the leader in online lending for small business,
announced today the closing of an AUD75 million asset-backed
revolving credit facility with Credit Suisse, and the closing of a
CAD50 million asset-backed revolving
credit facility with Crédit Agricole, to finance OnDeck
originations in Australia and
Canada, respectively.
The new Credit Suisse facility will be used to refinance OnDeck
Australia's current loan book at a significantly lower cost, as
well as to fund future originations. The Crédit Agricole
facility is the first for OnDeck Canada and provides the business
with access to CAD25 million of
committed capacity and an additional CAD25
million of capacity available at the discretion of the
lenders. Both facilities are floating rate and have an
initial weighted average interest rate of approximately
5.6%. The Credit Suisse facility and Crédit Agricole facility
are scheduled to mature in June 2020
and June 2021, respectively.
"Securing cost-effective facilities that provide committed
funding to support the loan growth of our international businesses
reflects another step forward in the execution of our financing
strategy," said Ken Brause, Chief
Financial Officer, OnDeck. "These two transactions provide
additional capacity to support small businesses in Australia and Canada and help them to achieve their goals."
Under the respective facilities, loans will be made to a
wholly-owned subsidiary of OnDeck Australia or OnDeck Canada, which
will purchase small business loans from OnDeck Australia and OnDeck
Canada, respectively. Each of the two separate revolving pools of
small business loans will serve as collateral under its respective
facility. OnDeck Australia and OnDeck Canada will act as the
servicer for its respective loans.
"We are pleased to expand our relationship with Credit Suisse
and to welcome Crédit Agricole as a financing partner," said Ron
Elimelekh, Head of Capital Markets, OnDeck. "These credit
facilities will help OnDeck to enable the growth of Australian and
Canadian small businesses through our industry-leading lending
technology and financing capability."
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 customers in 700
different industries across the United
States, Canada and
Australia. OnDeck has an A+ rating
with the Better Business Bureau and is rated 5 stars by Trustpilot.
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 facilities 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 facilities; 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:
Stephen Klimas
(646) 668-3582
sklimas@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.
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SOURCE On Deck Capital, Inc.