Pagaya Technologies, a global technology company delivering AI-driven product solutions for the financial ecosystem, has amended and expanded its existing revolving credit facility to $132 million, more than doubling the prior $58 million facility.
The expanded facility significantly reduces Pagaya’s cost of debt capital, lowering the interest rate by nearly 35% from SOFR+750 to SOFR+350. As a result, the cost of substantially all of Pagaya’s corporate borrowings are now at or below the company’s recent high-yield bond coupon of 8.875%.
The company’s new lenders include Wells Fargo, Citizens, TD Bank and Texas Capital. Its existing lenders include Bank of Montreal, Valley Bank and CIBC.
“This expanded facility is another important milestone in fortifying our balance sheet and building a durable capital structure that positions Pagaya to thrive in all market cycles,” Evangelos Perros, chief financial officer of Pagaya, said. “The addition of several new top-tier banks, alongside increased commitments from our existing lenders, underscores the confidence leading financial institutions have in our business model, profitability and long-term outlook. With this expanded facility in place, we are well-positioned to operate with even greater financial flexibility and efficiency.”
