On Deck gets $100 million asset-backed revolver at Libor plus 725 bps

By Marisa Wong

Morgantown, W.Va., Aug. 23 – On Deck Capital, Inc.’s wholly owned subsidiary, OnDeck Asset Funding I, LLC, established a new $100 million asset-backed revolving debt facility on Aug. 19, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

Ares Agent Services, LP is the administrative agent and collateral agent, and Wells Fargo Bank, NA is the paying agent.

The two-year facility may be used to finance some of the company’s loans not currently financeable by other funding sources due to concentration limitations and to finance its larger term loans with a maximum original principal amount of up to $400,000.

The facility is subject to a borrowing base.

Interest is equal to Libor plus 725 basis points, subject to a 0% Libor floor.

The facility’s financial covenants include, among others, requirements with respect to minimum tangible net worth, maximum leverage ratio, minimum consolidated liquidity and minimum unrestricted cash.

New York-based On Deck Capital is an online platform for small business lending.

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