Online lending platform OnDeck (NYSE: ONDK) announced earlier this week it has officially amended its asset-backed revolving credit facility with Deutsche Bank to extend the facility’s maturity date to March 2019 and also increase the facility’s borrowing capacity by approximately $52 million to a total of approximately $214 million.
According to OnDeck, under the facility, loans will continue to be made to the lender’s Account Receivables Trust 2013-1 LLC, or ODART, a wholly owned subsidiary of OnDeck, to finance ODART’s purchase of small business loans from OnDeck. The revolving pool of small business loans purchased by ODART serves as collateral under the facility. OnDeck is acting as the servicer for such small business loans. The ratings were previously assigned to the Class A and Class B Loans under the facility by DBRS, Inc., did not change as a result of the amendment. Speaking about the extension of the facility, Randal Johnson, director at Deutsche Bank, stated:
“We are pleased to provide OnDeck with an extension and upsize of this credit facility, which will help OnDeck to continue providing financing solutions to the small business community.”
Howard Katzenberg, chief financial officer of OnDeck, added:
“The closing of this transaction reflects a continued ability to execute our financing strategy for 2017, which includes extending debt maturities and creating additional funding capacity for future loan growth. Deutsche Bank, a leading global financial institution, has been a steadfast partner in supporting OnDeck’s mission to power the growth of small business through lending technology and innovation and we are pleased to continue our relationship into 2019.”
