Small business online lender OnDeck closed an $85 million corporate revolving credit facility. SunTrust Bank and Silicon Valley Bank served as arrangers on the facility, while MB Financial Bank and Congressional Bank joined them as lenders.
The new committed facility can be used for general corporate purposes and replaces OnDeck’s prior $30 million corporate facility.
“The closing of this facility is yet another step forward in our efforts to improve our funding flexibility and costs,” said Ken Brause, OnDeck chief financial officer. “Securing long-term lending commitments from a high quality and diverse bank group reflects growing confidence in the OnDeck business model and the improved financial strength of our company.”
The facility has a maturity date of January 2021 and a drawn interest rate of one month LIBOR + 3.00%.
“This transaction provides OnDeck with a significant source of incremental liquidity that provides flexibility to pursue strategic corporate initiatives at an attractive cost of funds,” said Ron Elimelekh, head of Capital Markets, OnDeck.