OnDeck completes A$75 million, C$50 million asset-backed revolvers

By Sarah Lizee

Olympia, Wash., July 18 – On Deck Capital, Inc. announced the closing of a A$75 million asset-backed revolving credit facility with Credit Suisse and a C$50 million asset-backed revolving credit facility with Credit Agricole to finance OnDeck originations in Australia and Canada, respectively.

The new Credit Suisse facility will be used to refinance OnDeck Australia's current loan book at a significantly lower cost, as well as to fund future originations, according to a press release.

The Credit Agricole facility is the first for OnDeck Canada and provides the business with access to C$25 million of committed capacity and an additional C$25 million of capacity available at the discretion of the lenders.

Both facilities have floating rates and have an initial weighted average interest rate of about 5.6%.

The Credit Suisse facility and Crédit Agricole facility are scheduled to mature in June 2020 and June 2021, respectively.

Under the respective facilities, loans will be made to a wholly owned subsidiary of OnDeck Australia or OnDeck Canada, which will purchase small business loans from OnDeck Australia and OnDeck Canada, respectively.

Each of the two separate revolving pools of small business loans will serve as collateral under its respective facility. OnDeck Australia and OnDeck Canada will act as the servicer for its respective loans.

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

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