OnDeck (NYSE: ONDK), a NYC-based online lending platform for small business, closed a $200m asset-backed revolving debt facility with Credit Suisse.
In addition to its other funding sources, OnDeck may now obtain funding under the new credit facility with Credit Suisse, subject to customary borrowing conditions, by accessing $125m of committed capacity and an additional $75m of capacity available at the discretion of the lenders.
Under the facility, loans will be made to Prime OnDeck Receivable Trust II, LLC, or PORT II, a wholly-owned subsidiary of OnDeck, to finance PORT II’s purchase of small business loans from OnDeck.
The revolving pool of small business loans purchased by PORT II serves as collateral under the facility. OnDeck is acting as the servicer for such small business loans.
The Class A Loans under the facility were rated by DBRS, Inc.
OnDeck intends to initially use a portion of this facility, together with other available funds, to optionally prepay in full without penalty or premium, the existing $100m Prime OnDeck Receivable Trust, LLC facility which was scheduled to expire in June 2017.
As a result, OnDeck will benefit from obtaining additional funding capacity through December 2018.
Launched in 2007, OnDeck provides a platform which leverages a proprietary credit scoring system to make real-time lending decisions and deliver capital to small businesses in as little as 24 hours.
To date, the company has deployed over $5 billion to more than 60,000 customers in 700 different industries across the United States, Canada, and Australia.