• Mar. 30, 2017, 1:34 pm

OnDeck announces new credit facility

Online lender for small businesses OnDeck has closed a $200-million asset-backed revolving debt facility with Credit Suisse.

OnDeck may access $125 million of committed capacity, with the remaining $75 million at lenders’ discretion.

CFO Howard Katzenberg

CFO Howard Katzenberg

Under the arrangement, loans will be made to Prime OnDeck Receivable Trust II, LLC, a wholly-owned subsidiary of OnDeck to finance the trust’s purchase of OnDeck loans.

The trust’s revolving pool of loans serves as collateral under the facility. DBRS rated the loans Class A.

In a release, OnDeck said it intends to use part of the facility in combination with other funds to optionally repay the existing $100 million Prime OnDeck Receivable Trust which was due to expire next June.

That allows the platform access to additional funding capacity through December 2018.

“This transaction marks a continuation of our financing strategy to diversify funding sources, extend debt maturities, and create additional funding capacity to pave way for future loan growth,” OnDeck CFO Howard Katzenberg said.

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