FORT WORTH, Texas--(BUSINESS WIRE)--
Elevate Credit, Inc. (ELVT) (“Elevate” or the “Company”), a leading tech-enabled provider of innovative and responsible online credit solutions for non-prime consumers, today announced amendments to the credit facilities for its four products with Victory Park Capital (“VPC”), a leading global alternative investment firm. The new facilities will fund loans originated by Elevate and its bank partners. This will result in a significantly lower cost of capital for Elevate and provide over one billion dollars in available capital.
“Our partnership with Victory Park Capital has been an important driver of our tremendous growth to date. We are proud to continue our long-standing relationship with VPC with these significantly expanded and lower-cost financing facilities,” said Ken Rees, Elevate CEO.
“Elevate is filling a critical void in the market by providing underserved consumers in the U.S. and U.K. with safe and transparent forms of alternative credit,” said Tom Welch, partner at VPC. “This latest transaction further solidifies our partnership with Ken and his team, which now spans over nearly a decade, and we look forward to Elevate’s continued success.”
Terms for the amended facilities include the following:
- Pricing is 3-month LIBOR plus 7.50% for all product facilities (subordinated debt unchanged) 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 - $350 million commitment for Rise state licensed and Today Card, $150 million for Rise FinWise Bank special purpose vehicle (SPV), $350 million for Elastic Republic Bank SPV, £100 million for Sunny UK and $35 million for the existing subordinated debt
- 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
- Maturity date of January 1, 2024 (except for the $35 million in subordinated debt, which continues to have a maturity date of February 1, 2021)
- $2.4 million amendment fee in the first quarter of 2019
Elevate (ELVT), together with its bank partners, has originated $6.7 billion in non-prime credit to more than 2.2 million non-prime consumers to date and has saved its customers more than $4.8 billion versus the cost of payday loans. Its responsible, tech-enabled online credit solutions provide immediate relief to customers today and help them build a brighter financial future. The company is committed to rewarding borrowers’ good financial behavior with features like interest rates that can go down over time, free financial training and free credit monitoring. Elevate’s suite of groundbreaking credit products includes RISE, Elastic, Sunny and Today Card. For more information, please visit http://www.elevate.com.
About Victory Park Capital
Victory Park Capital Advisors, LLC (“VPC”) is a privately held, SEC-registered, global alternative investment firm. VPC provides opportunistic capital solutions to both emerging and established businesses with an expertise investing across various sectors where traditional sources of capital are limited. The firm’s differentiated offerings leverage an extensive network of industry relationships, disciplined deal origination, creative financing capabilities and broad credit structuring and special situations expertise. The firm was founded in 2007 and is headquartered in Chicago with additional offices in New York, Los Angeles and San Francisco. For more information, please visit www.victoryparkcapital.com.