On Thursday, LendingPoint announced it closed an increase of its mezzanine financing, bringing the total of the facility to $52.5 million. LendingPoint reported that Paragon Outcomes Management LLC provided the financing that closed earlier this month and both companies have been building upon a successful relationship started with their first mezzanine credit facility in January 2017 of just $20 million, which was upsized just seven months later, and now has been upsized again to $52.5 million.
According to LendingPoint, the credit facility provides advance rate enhancement with LendingPoint’s other credit facilities for more efficient equity usage while also providing swingline support. Tom Burnside, LendingPoint co-founder and CEO, stated:
“We are delighted by the continued show of confidence from our friends at Paragon Outcomes. Their support has been critical as we grow our origination volume and balance sheet, and march towards profitability next year. We’re proud that LendingPoint’s performance to date means companies like Paragon Outcomes want to be part of our future.”
LendingPoint then explained that the upsized mezzanine allows the company to efficiently manage its equity by warehouse financing its originations before selling them into its Senior Credit Facilities. This helps optimize line utilization and portfolio balancing between the Senior Credit Facilities. Frank Tripoli, Managing Partner and Chief Investment Officer at Paragon Outcomes, went on to add:
“We continue to be impressed with the performance of the LendingPoint team. When we met them they told us they were a ‘credit first’ company and everything we have seen them do since continues to validate that description. We at Paragon Outcomes look forward to LendingPoint’s continued success and being a part of the LendingPoint story as it unfolds.”
LendingPoint has reportedly processed more than 850,000 applications arising from borrowers requesting more than $9.2 billion in loans during the first quarter of 2018