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Pagaya Technologies closes $280 million five-year credit facility
By Mary-Katherine Stinson
Lexington, Ky., Feb. 7 – Pagaya Technologies Ltd. and Pagaya US Holding Co. LLC closed on a credit agreement on Feb. 2, providing a $25 million five-year senior secured revolving credit facility and a $255 million five-year senior secured term loan facility, according to a 6-K filing with the Securities and Exchange Commission.
Borrowings under the facilities bear interest at SOFR, subject to a 1% floor, plus a margin of 750 basis points. A commitment fee accrues on any unused portion of the revolver at an annual rate of 25 bps, payable quarterly in arrears.
No amortization payments are required for the revolver. Amortization payments at the rate of 1.25% of the principal amount are required to be made in the case of the term loans each quarter.
Voluntary prepayments may be made on the term loan facility with the following fees: 3% if paid prior to the first anniversary, 2% if paid after the first anniversary, 1% if after the second anniversary and 0.5% if after the third anniversary. In each case, prepayments may be subject to breakage costs.
Acquiom Agency Services LLC as administrative agent.
Jefferies served as the sole arranger.
The lenders include funds and accounts managed by BlackRock U.S. Private Capital, UBS O’Connor, JPMorgan Chase, Valley Bank and Israel Discount Bank.
Proceeds may be used for the company’s and its subsidiaries’ general corporate purposes. A press release noted that borrowings would be used to pay off outstanding borrowings from the company’s previous facility, invest in product innovation and grow the company’s network with both existing and new lending and investor partners.
As of Feb. 7, the revolver is undrawn.
The facilities replace the company’s previous Silicon Valley Bank credit facility, which was repaid and terminated.
Pagaya is a New York City-based company that provides software solutions for online lending, auto finance, students and credit card loans.
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