Sezzle, a digital payment platform, secured a new $300 million receivables funding facility with Mesirow Alternative Credit (f.k.a. Bastion), which will serve as both lender and administrative agent. The new facility doubles the company’s original $150 million committed facility established in April 2024, which was subsequently expanded to $225 million through an accordion feature. The refinancing lowers Sezzle’s cost of capital and expands committed capacity to support the company’s continued growth.
The facility carries an interest rate of secured overnight financing rate (SOFR) plus 3.86%, a reduction of nearly 290 basis points from the prior facility’s spread of 6.75%. The advance rate has been increased to up to 92.5% of eligible receivables originations, compared with up to 90.0% previously.
“As Sezzle continues to scale, efficient and flexible funding remains a key priority,” Lee Brading, chief financial officer of Sezzle, said. “This new facility materially improves our cost of capital, expands our committed capacity and better positions us to support the growth opportunities ahead. We believe these improved terms reflect the strong performance of our receivables and the disciplined approach our team has taken to credit and capital management.”
