LendingPoint closed a committed, $250 million credit facility arranged by Guggenheim Securities. The credit facility has an accordion feature, which allows it to increase the size of the credit facility to up to $500 million.
On the closing date, the company drew down $215 million of notes from the credit facility.
LendingPoint intends to use the credit facility to fund the continued growth of its consumer installment loan origination platform, which grew by 64% through July 2019 compared to the same period in 2018.
Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, arranged the transaction and served as sole structuring agent and sole bookrunner. CBIZ is the administrative agent, and U.S. Bank is the note agent and paying agent. The transaction was structured as an amendment, an extension, and an upsize of LendingPoint’s Series 2017-1 credit facility, which was also arranged by Guggenheim Securities.
The amended credit facility priced at a blended margin that is approximately 200 basis points below that of the original, Series 2017-1 credit facility, and is structured as a variable funding note program, which allows LendingPoint to periodically transfer receivables from the credit facility to collateralize a takeout transaction, such as a securitization or a whole loan sale.
Earlier this year, the company upsized its 2018 credit facility arranged by Guggenheim Securities to $350 million. That facility can be upsized to a total of $600 million.
LendingPoint originates unsecured consumer installment loans directly using its own lender licenses and also originates for FinWise Bank, a Utah chartered bank, member FDIC and for First Electronic Bank, a Utah chartered bank, member FDIC.
