On Deck subsidiary increases, extends ABL revolver, lowers pricing

By Tali Rackner

Minneapolis, May 5 – On Deck Capital, Inc. wholly owned subsidiary On Deck Asset Co., LLC amended and restated its existing asset-backed revolving debt facility on Thursday with WM 2016-1, LLC, as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides for:

• An increase in the lender’s revolving commitments to $100 million from $75 million;

• A roughly two-year extension of the revolving commitment period during which On Deck Asset may use funding capacity under the facility to May 3, 2019;

• A decrease in the revolving loans interest rate to Libor plus 725 basis points with a 0.75% Libor floor from Libor plus 925 bps with a 0% Libor floor;

• An increase in the borrowing advance rate to 85% from 75%;

• Certain changes to portfolio performance covenants; and

• Various related technical, definitional, conforming and other changes.

The ABL facility is used solely for the financing of the company’s line of credit offering.

OnDeck is a New York-based company that uses proprietary technology and credit models to evaluate the financial health of provide capital to small businesses.

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