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LendingPoint closes up to $500 million facility to accelerate growth
By Sarah Lizee
Olympia, Wash., Sept. 20 – LendingPoint closed an up to $500 million credit facility arranged by Guggenheim Securities on Aug. 22, according to a press release.
The company took down $138.5 million of the facility at the closing and on Sept. 15 it took down an additional $32.7 million.
LendingPoint said it intends to use the funds to fuel the growth of its consumer installment loan portfolio which has roughly doubled – growth of 98% – between August 2016 and August 2017.
Earlier this year, the company announced a participation agreement with FinWise Bank, allowing LendingPoint to offer NearPrime consumers across the United States access to installment loans with standardized rates, loan agreements, product portfolios, marketing and services.
As a result of the FinWise relationship, LendingPoint recently expanded marketing and is now operational in 30 states plus the District of Columbia. The company expects to have originated, either directly or by FinWise Bank, more than $400 million in consumer loans from inception until end of this year.
“Investors are looking for opportunities that combine leading technology, sound data and risk modeling, and predictable return. LendingPoint’s credit-first, balance sheet approach has proven that it’s possible to unlock access to credit for more consumers who have been underserved by traditional lending, while still offering stable, predictable performance for investors,” Tom Burnside, co-founder and CEO of LendingPoint said in the release.
Guggenheim Securities was the bookrunner, CBIZ MHM was the administrative agent and U.S. Bank was the note agent and paying agent.
LendingPoint is a balance sheet lender based in Kennesaw, Ga.
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