OnDeck (NYSE: 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:
Commitment Amount:
$85 million
Interest Rate (drawn):
1 Month LIBOR + 3.00%
Maturity Date:
January 2021
Arrangers:
SunTrust Bank and Silicon Valley Bank
Other Lenders:
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.