Online lender OnDeck (NYSE:ONDK), has closed on two asset backed credit facilities totaling nearly $100 million. One in the amount of AUD 75 million with Credit Suisse, and another for CAD 50 million with Crédit Agricole, The two facilities will finance loan originations in Australia and Canada.
OnDeck said the new Credit Suisse facility will be used to refinance their Australian 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 CAD 25 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.
OnDeck CFO Ken Brause said securing the new facilities will support the growth of their international operations.
“These two transactions provide additional capacity to support small businesses in Australia and Canada and help them to achieve their goals.”
OnDeck is an online lender that caters to small business. To date, the company has deployed over $8 billion to customers across the United States, Canada and Australia.
