Pagaya Expands Term Loan with Improved Terms and Additional Corporate Lending Partners
03 Décembre 2024 - 2:30PM
Business Wire
New long-term partners BMO and CIBC funded incremental term loan
upsize of $28 million and an additional $15 million revolver
commitment
Final step of previously-announced balance sheet optimization is
expected to create substantial interest expense savings and enhance
liquidity while de-risking capital structure
Pagaya Technologies LTD. (NASDAQ: PGY) ("Pagaya" or “the
Company”), a global technology company delivering AI-driven product
solutions for the financial ecosystem, today announced the
completion of its previously-announced $100 million term loan
upsize, with an additional $28 million of funding provided by
Canadian Imperial Bank of Commerce (CIBC) and Bank of Montreal
(BMO). The two banks also funded a $15 million expansion of
Pagaya’s revolving credit facility. Additionally, the Company
completed its previously-announced sale of $100 million of balance
sheet securities, executed at a premium to the securities’ carrying
value.
These transactions, in conjunction with the October exchangeable
senior notes issuance, result in total proceeds of over $300
million. These proceeds will largely be used to refinance higher
cost borrowings, leading to meaningful interest expense savings,
access to additional liquidity, and enhanced financial
flexibility.
“Today’s announcement reflects the confidence that leading
traditional banks have in Pagaya as we successfully execute our
financial strategy,” said Evangelos Perros, Chief Financial Officer
of Pagaya. “These actions improve and expand our access to capital,
and the associated cost savings support cash flow generation and
our progress toward achieving GAAP profitability during 2025.”
About Pagaya Technologies Pagaya (NASDAQ: PGY) is a
global technology company making life-changing financial products
and services available to more people nationwide, as it reshapes
the financial services ecosystem. By using machine learning, a vast
data network and an AI-driven approach, Pagaya provides
comprehensive consumer credit and residential real estate products
for its partners, their customers, and investors. Its proprietary
API and capital solutions integrate into its network of partners to
deliver seamless user experiences and greater access to the
mainstream economy. Pagaya has offices in New York and Tel Aviv.
For more information, visit pagaya.com.
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