LendingPoint announced on Monday it completed its $250 million credit facility, which was arranged by Guggenheim Securities. According to LendingPoint, the facility has an accordion feature, which allows the Company to increase the size of the credit facility to up to $500 million.
“The amended credit facility priced at a blended margin that is approximately 200 basis points below that of the original, Series 2017-1 credit facility, and is structured as a variable funding note program, which allows LendingPoint to periodically transfer receivables from the credit facility to collateralize a takeout transaction, such as a securitization or a whole loan sale.”
While sharing more details about the facility, Victor Jose Pacheco, Co-Founder and Head of Capital Markets at LendingPoint, stated:
“Investors are looking for compelling receivables-backed investment opportunities that combine leading technology with sound and time-tested credit underwriting practices. The success of this credit facility highlights investors’ belief in LendingPoint’s ability and vision to provide NearPrime consumers with more responsible borrowing choices, as well as confidence in the leadership team at LendingPoint and our unique and differentiated approach to lending.”
Tom Burnside, Co-Founder and CEO of LendingPoint, added:
“From the beginning, our team has understood that building the commerce platform we envision requires offering stable, predictable performance for investors. Today’s announcement demonstrates investor confidence in our ability to predict risk both online direct to consumer and at the point of sale. As we continue to build out the platform, we will not lose sight of the need to maintain healthy margins in all of the products and services we offer.”
Founded in 2014, LendingPoint described itself as a leading fintech balance sheet lender that is committed to redefining who is able to access money at fair rates and empowering consumers to build financial momentum.