OnDeck extended its existing credit facilities with Credit Suisse and Deutsche Bank on improved terms. The amended facilities provide an aggregate of $360 million of committed funding capacity and are available to finance OnDeck’s term loans and revolving lines of credit.
The scheduled maturity dates for the facilities were extended three years to March 2022.
“We are pleased to continue to work with Credit Suisse and Deutsche Bank as we fulfill our mission to transform small business lending,” said Ken Brause, chief financial officer, OnDeck. “These transactions, together with the eight others we have executed over the past year, demonstrate the strength of OnDeck’s business model and growing support from banks and capital markets.”
OnDeck spent the last 12 months significantly improving its funding profile through the closing of ten funding transactions that created approximately $1.2 billion in new funding capacity. These successful transactions reduced OnDeck’s weighted average spread by over 200 basis points and lengthened maturities, resulting in a current weighted average maturity of approximately three years.
“In early 2018, we set in motion an ambitious plan to improve our funding profile,” said Ron Elimelekh, senior vice president and head of capital markets, OnDeck. “We are pleased to have successfully secured longer-term funding commitments, reduced our cost of funds and expanded our investor base to include new partners such as leading life insurance companies. OnDeck’s funding framework is well positioned to finance strategic opportunities while supporting domestic and international loan growth.”
