Elevate Credit, a tech-enabled provider of online credit solutions for non-prime consumers, amended the credit facilities for its four products with alternative investment firm Victory Park Capital.
The new facilities will fund loans originated by Elevate and its bank partners, which will result in a significantly lower cost of capital for Elevate and provide over one billion dollars in available capital.
Terms for the amended facilities included, among other things:
- Pricing at 3-month LIBOR plus 7.50% for all product facilities, effective February 1, 2019 for the Rise and Sunny facilities and effective July 1, 2019 for the Elastic ESPV facility
- Over $1 billion in facilities, including a $350 million commitment for the Rise state-licensed and Today Card, $150 million for the Rise FinWise Bank special purpose vehicle (SPV) and $350 million for Elastic
- A 20% revolver in the first quarter of each year for each product facility and a 0.25% reduction in cost of funds for each product facility in both 2020 and 2021, subject to meeting certain net income thresholds
- A maturity date of January 1, 2024 (except for the $35 million in subordinated debt, which will continue to have a maturity date of February 1, 2021)
- $2.4 million amendment fee in the first quarter of 2019
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