Amended Facilities with Credit Suisse and Deutsche Bank Further Strengthen OnDeck's Funding Profile
NEW YORK, March 13, 2019 /PRNewswire/ -- OnDeck® (ONDK), the leader in online lending for small business, today announced extensions to its existing credit facilities with Credit Suisse and Deutsche Bank on improved terms. The amended facilities provide an aggregate of $360 million of committed funding capacity and are available to finance OnDeck's term loans and revolving lines of credit. The scheduled maturity dates for the facilities were extended three years to March 2022.
"We are pleased to continue to work with Credit Suisse and Deutsche Bank as we fulfill our mission to transform small business lending," said Ken Brause, Chief Financial Officer, OnDeck. "These transactions, together with the eight others we have executed over the past year, demonstrate the strength of OnDeck's business model and growing support from banks and capital markets."
Today's announcement follows a transformative twelve-month period for OnDeck during which it significantly improved its funding profile through the closing of ten funding transactions that created approximately $1.2 billion in new funding capacity. These successful transactions reduced OnDeck's weighted average spread by over 200 basis points and lengthened maturities, resulting in a current weighted average maturity of approximately 3 years.
"In early 2018, we set in motion an ambitious plan to improve our funding profile," said Ron Elimelekh, Senior Vice President and Head of Capital Markets, OnDeck. "We are pleased to have successfully secured longer-term funding commitments, reduced our cost of funds and expanded our investor base to include new partners such as leading life insurance companies. OnDeck's funding framework is well positioned to finance strategic opportunities while supporting domestic and international loan growth."
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 facilities; 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, 2018 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.
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