Fintech platform LendingPoint closed an increase of its mezzanine financing, bringing the total of the facility to $67.5 million. A Paragon co-investor joined the facility as a lender. Paragon Outcomes Management led the deal and participated in the upsizing.
Paragon and LendingPoint continue to build upon their successful relationship which started with their first mezzanine credit facility in January 2017 of just $20 million, which was upsized in August 2017 and in June 2018, and now has been upsized again to $67.5 million.
The credit facility will provide advance rate enhancements for more efficient equity usage while also providing swingline support.
Today’s announcement is the latest in a string of financing transactions LendingPoint has closed in the past 15 months. The company secured an up to $500 million senior credit facility in August 2017 and an up to $600 million senior credit facility in May 2018, both arranged by Guggenheim Securities.
“Paragon Outcomes continues to provide outstanding support for the growth of the LendingPoint platform and balance sheet,” said Tom Burnside, LendingPoint co-founder and CEO. “Their support enables us to continue to build our high performing balance sheet and fuels our march towards profitability quarter. To have companies like Paragon Outcomes want to be part of our future is a strong wind at our back.”
The upsized mezzanine will allow LendingPoint to more efficiently manage its equity by warehouse financing its originations before selling them into its senior credit facilities. This helps optimize line utilization and portfolio balancing between the senior credit facilities.
“At the risk of becoming repetitious, we continue to be impressed with the performance of the LendingPoint team,” said Frank Tripoli, Paragon managing partner and chief investment officer. “They pride themselves on their credit risk management, and everything we have seen them do continues to validate that pride. We at Paragon Outcomes look forward to LendingPoint’s continued success and being a part of the LendingPoint story as it unfolds.”
LendingPoint provides direct to consumer loans as well as product and service financing at the point of sale. Its LendingPoint Merchant Solutions platform provides merchants, service providers and medical institutions a fully integrated, one-stop retail financing in-a-box solution to convert more customers at the point of sale.
Founded in 2009, Paragon Outcomes Management LLC is a New York City-based SEC-registered private investment firm. It invests across the capital structure emphasizing capital preservation and cash yield.