On Deck Capital Inc (NYSE:ONDK), the pioneer in online lending for small operations, reported the closing of a revolving debt facility worth $200 million with Credit Suisse. Besides its other funding sources, the company may now get financing under the new credit facility with Credit Suisse, depending on the customary borrowing conditions, by retrieving $125 million of promised capacity and an additional capacity of $75 million available at the option of the lenders.
The details
Jon-Claude Zucconi, the Managing Director of Credit Suisse, said that On Deck has evolved as a leading provider of development capital to small businesses across the country. The team’s innovative commitment and vision to financing is vital to growth and expansion in the small business community.
Under this facility, loans will be available to PORT II, a subsidiary firm of On Deck, to support PORT II’s acquisition of small business loans from company. The revolving pool of small commercial loans bought by PORT II serves as security under the facility. On Deck is serving as the servicer for small business finances. The Class “A” Loans under this facility were graded by DBRS, Inc.
On Deck plans to initially use a part of this facility, along with other accessible funds, to optionally prepay entirely without premium or penalty, the current $100 million PORT facility which was planned to expire in June 2017. Therefore, the company will benefit from getting additional funding capacity via December 2018.
Howard Katzenberg, the Chief Financial Officer of On Deck, said that this deal marks a continuation of their financing plan to diversify funding sources, create additional funding capacity and extend debt maturities to pave the way for loan growth. They are delighted to have Credit Suisse, a major global financial institution, backing On Deck in its mission to power the development of small business via lending technology and innovation.
