Atalaya Capital Management, a private credit and special opportunities alternative investment manager, closed a $100 million senior secured revolving credit facility to CURO Group. The facility’s borrowing capacity may be increased up to $200 million over time.
“We are very pleased to complete our facility in what could certainly be described as a challenging environment,” Don Gayhardt, president and CEO of CURO, said. “The Atalaya team was supportive and creative in navigating market changes to bolster CURO’s liquidity and provide funding capacity to support U.S. growth in the future.”
CURO provides short-term credit to underbanked consumers in the U.S. and Canada. The company will use proceeds from the facility to finance new U.S. installment and line-of-credit receivables, including those generated under its technology, marketing and servicing relationship with Stride Bank.
“We are glad to support the growth of CURO with this facility, which will better position them to execute their goal of providing financial support to the underbanked,” Justin Burns, a managing director for Atalaya Capital Management, said. “Given recent events, there is likely to be an acute need for flexible credit across the consumer spectrum. We think that CURO is a best-in-class platform with a proven ability to step up in recessionary environments and support consumers when banks and other traditional sources of credit naturally retrench.”
Stephens Inc. served as financial advisor to CURO in the transaction.
“CURO has been an important client of the firm for over a decade and we are pleased to have had the opportunity to assist them in securing additional growth capital,” Nick Bellmann, a managing director in the debt capital markets group at Stephens Inc., said. “At the same time, we think the Atalaya team proved the depth of their experience and commitment to the sector by closing a new facility in an extremely challenging environment.”