OnDeck (NYSE:ONDK), the leader in online lending for small business, announced today the closing of an AUD75 million asset-backed revolving credit facility with Credit Suisse, and the closing of a CAD50 million asset-backed revolving credit facility with Crédit Agricole, to finance OnDeck originations in Australia and Canada, respectively.
The new Credit Suisse facility will be used to refinance OnDeck Australia's current loan book at a significantly lower cost, as well as to fund future originations. The Crédit Agricole facility is the first for OnDeck Canada and provides the business with access to CAD25 million of committed capacity and an additional CAD25 million of capacity available at the discretion of the lenders. Both facilities are floating rate and have an initial weighted average interest rate of approximately 5.6%. The Credit Suisse facility and Crédit Agricole facility are scheduled to mature in June 2020 and June 2021, respectively.
"Securing cost-effective facilities that provide committed funding to support the loan growth of our international businesses reflects another step forward in the execution of our financing strategy," said Ken Brause, Chief Financial Officer, OnDeck. "These two transactions provide additional capacity to support small businesses in Australia and Canada and help them to achieve their goals."
Under the respective facilities, loans will be made to a wholly-owned subsidiary of OnDeck Australia or OnDeck Canada, which will purchase small business loans from OnDeck Australia and OnDeck Canada, respectively. Each of the two separate revolving pools of small business loans will serve as collateral under its respective facility. OnDeck Australia and OnDeck Canada will act as the servicer for its respective loans.
"We are pleased to expand our relationship with Credit Suisse and to welcome Crédit Agricole as a financing partner," said Ron Elimelekh, Head of Capital Markets, OnDeck. "These credit facilities will help OnDeck to enable the growth of Australian and Canadian small businesses through our industry-leading lending technology and financing capability."
About OnDeck OnDeck (NYSE: ONDK) is the leader in online small business lending. Since 2007, the company has powered Main Street's growth through advanced lending technology and a constant dedication to customer service. OnDeck's proprietary credit scoring system – the OnDeck Score® – leverages advanced analytics, enabling OnDeck to make real-time lending decisions and deliver capital to small businesses in as little as 24 hours. OnDeck offers business owners a complete financing solution, including the online lending industry's widest range of term loans and lines of credit. To date, the company has deployed over $8 billion to customers in 700 different industries across the United States, Canada and Australia. OnDeck has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, please visit www.ondeck.com.
