NEW YORK, Feb. 7, 2019 /PRNewswire/ -- OnDeck® (ONDK), the leader in online lending for small business, announced today the closing of an $85 million corporate revolving credit facility with a lender group consisting of four banks. The new committed facility can be used for general corporate purposes and replaces OnDeck's prior $30 million corporate facility.
"The closing of this facility is yet another step forward in our efforts to improve our funding flexibility and costs," said Ken Brause, Chief Financial Officer, OnDeck. "Securing long-term lending commitments from a high quality and diverse bank group reflects growing confidence in the OnDeck business model and the improved financial strength of our company. "
The following are additional details about the new facility:
Interest Rate (drawn):
1 Month LIBOR + 3.00%
SunTrust Bank and Silicon Valley Bank
MB Financial Bank and Congressional Bank
"This transaction provides OnDeck with a significant source of incremental liquidity that provides flexibility to pursue strategic corporate initiatives at an attractive cost of funds," said Ron Elimelekh, Head of Capital Markets, OnDeck.
OnDeck (ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online. Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly-owned subsidiary. OnDeck has provided over $10 billion in loans to customers in 700 different industries across the United States, Canada and Australia. The company has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, visit www.ondeck.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as "proposed," "will," "enables," "expects," "allows," "continues," "believes," "anticipates," "estimates" or similar expressions. These include statements regarding funding possible future loan growth or other business activities as a result of entering into the new facility or otherwise. Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations. Factors that could cause or contribute to actual results differing from our forward-looking statements include risks relating to: our ability to meet borrowing conditions and remain in compliance with all the provisions of the new facility; changes in the financial markets, including changes in credit markets and interest rates; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally; and other risks, including those described in our Annual Report on Form 10-K for the year ended December 31, 2017 and in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov. Except as required by law, we undertake no duty to update the information in this press release.
OnDeck, the OnDeck logo, OnDeck Score and OnDeck Marketplace are trademarks of On Deck Capital, Inc.
View original content to download multimedia:http://www.prnewswire.com/news-releases/ondeck-adds-new-revolving-credit-facility-300791387.html