OnDeck Announces $100 Million Revolving Credit Facility Closing

Online lending platform for small business OnDeck announced last week the closing of a $100 million asset-backed revolving credit facility with Pioneers Gate LLC, a lending vehicle of a life insurance company managed by 20 Gates Management. According to OnDeck, 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.

OnDeck reported that 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. Ken Brause, Chief Financial Officer of OnDeck, stated:

“We are excited to complete yet another milestone transaction that increases our funding flexibility while reducing costs. 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.”

Ron Elimelekh, Head of Capital Markets of OnDeck, then added:

“We are delighted to announce further progress on executing our funding strategy on the heels of closing our most recent securitization. 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.”

Sponsored Links by DQ Promote



Send this to a friend