Pagaya Technologies LTD. (NASDAQ: PGY), a company offering AI-driven solutions for financial services, announced the closing of a credit facility with participation from Funds and Accounts managed by BlackRock U.S. Private Capital, UBS O’Connor, JPMorgan Chase, Valley Bank, and Israel Discount Bank.
The facility, which consists of “a $255 million term loan and a $25 million revolver, provides the capital and liquidity needed to support the Company’s future growth, extends its corporate debt maturity to 2029 and validates investors’ confidence in Pagaya’s business model and financial strength.”
Gal Krubiner, Co-Founder and CEO of Pagaya, said:
“This credit facility, led by BlackRock, showcases the confidence and support from some of the largest and most sophisticated financial institutions in the world, as we transform the consumer finance ecosystem in the next phase of our growth journey.”
In the last four months of 2023, the company “secured four new lending partners, including a top bank and top auto captive, which are expected to drive a transformational step-change in Pagaya’s network expansion.”
In addition, the Company recently “pre-announced strong full-year 2023 financial performance, with Network Volume exceeding $8.2 billion and Adjusted EBITDA exceeding $75 million, implying annualized run-rate Adjusted EBITDA of over $110 million based on 4Q2023.”
Proceeds from the facility will be used “to pay off outstanding borrowings from the Company’s previous facility, invest in product innovation, and grow its network with both existing and new lending and investor partners.”
Jefferies served as Sole Arranger on the transaction.
As noted in the update, Pagaya (NASDAQ: PGY) is “a global technology company making life-changing financial products and services available to more people nationwide.”
By using machine learning, a vast data network and a sophisticated AI-driven approach, Pagaya “provides comprehensive consumer credit and residential real estate solutions for its partners, their customers, and investors. Its proprietary API and capital solutions integrate into its network of partners to deliver seamless user experiences and greater access to the mainstream economy.”
Pagaya has offices in New York and Tel Aviv.
