LendingPoint Closes $ 250 Million Credit Facility Organized by Guggenheim Securities
KENNESAW, Georgia – (COMMERCIAL THREAD) –Point Ready, the company that works to revolutionize and democratize commerce, today announced the closure of a $ 250 million committed credit facility arranged by Guggenheim Securities. The credit facility has an accordion feature, which allows the Company to increase the size of the credit facility up to $ 500 million. On the closing date, the Company drew $ 215 million of notes under the credit facility.
LendingPoint intends to use the credit facility to fund the continued growth of its consumer installment loan origination platform, which grew 64% through July 2019 compared to the same period in 2018. Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, arranged the transaction and served as sole structuring agent and sole bookrunner. CBIZ MHM is the Administrative Agent and US Bank is the Notes Agent and Paying Agent. The transaction was structured as an amendment, extension and increase in size of LendingPoint’s 2017-1 Series credit facility, which was also hosted by Guggenheim Securities.
The Amended Credit Facility is valued at a weighted margin approximately 200 basis points lower than the original Series 2017-1 credit facility, and is structured as a variable credit rating program, which allows LendingPoint to Periodically transfer receivables from the credit facility to secure a take-out transaction, such as a securitization or the sale of a full loan.
Earlier this year, the company increased its 2018 credit facility arranged by Guggenheim Securities to $ 350 million. This facility can be expanded to a total of $ 600 million.
LendingPoint grants unsecured consumer installment loans directly using its own lender licenses and also originates from FinWise Bank, a chartered bank of Utah, member of the FDIC and First Electronic Bank, a chartered bank of Utah, member of the FDIC. Assemblies are made direct to the consumer online and through thousands of merchants and service providers nationwide who offer point-of-sale financing.
“Investors are looking for attractive debt-backed investment opportunities that combine cutting-edge technology with strong, proven credit underwriting practices,” said Victor Jose Pacheco, Co-Founder and Head of Capital Markets at LendingPoint. “The success of this credit facility demonstrates investor confidence in LendingPoint’s ability and vision to provide NearPrime consumers with more responsible borrowing choices, as well as confidence in LendingPoint’s leadership team and our unique and differentiated approach to loans.
“From the start, our team understood that building the commerce platform we envision requires delivering stable and predictable performance to investors,” said Tom Burnside, Co-Founder and CEO of LendingPoint. “Today’s announcement demonstrates investor confidence in our ability to predict risk both online directly to the consumer and at the point of sale. As we continue to develop the platform, we will not lose sight of the need to maintain healthy margins in all of the products and services we offer. ”
LendingPoint combines data and technology to create a proprietary model that brings additional dimensions to traditional credit analysis. This model allows the company to get a more complete financial history of the client and to approve clients who otherwise might have been overlooked by lenders with less robust and more traditional credit scoring models, dependent on score. FICO. The loan amount offered ranges from $ 500 to $ 26,500, with terms of 24 to 51 months. So whether a client is planning a dream vacation or a dream wedding; a home renovation or move abroad; or want to access funds for debt consolidation or medical expenses – LendingPoint responds to clients in seconds with loan offers that meet their needs and provide transparent terms, taking the guesswork out of repayment.
“We are revolutionizing and democratizing commerce,” Burnside said. “We started by using data and technology to tell unique credit stories – examining people’s potential, not just their pasts. We then moved on to point-of-sale financing to help most consumers with alternatives to revolving credit card debt and compound interest. Even as we provide more data, tools and services to transform commerce, we will always make sure to make credit fair again for a large segment of the population who deserve it, but who are underserved.
LendingPoint’s mission is to revolutionize and democratize commerce. Starting by using data and technology to deliver credit to underserved NearPrime consumers online, then expanding to serve virtually any customer with point-of-sale financing, LendingPoint seeks to accelerate commerce and help people to live a better financial life. Its award-winning management team brings unparalleled experience in FinTech and credit. In August 2019, LendingPoint was named # 17 on the Inc. 5000 list of the fastest growing companies in the United States. LendingPoint is a privately held company headquartered in Kennesaw, Georgia. LendingPoint makes loans directly and grants on behalf of FinWise Bank, a chartered bank of Utah, member FDIC and First Electronic Bank, a chartered bank of Utah, member FDIC. For more information visit https://www.lendingpoint.com.
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