Sezzle unit enters into $100 million asset-based revolving facility

Chicago, Oct. 18 – Sezzle Inc. wholly owned indirect subsidiary Sezzle Funding SPE II, LLC entered into a senior secured asset-based revolving credit facility with a borrowing capacity of up to $100 million on Oct. 14, according to an 8-K filing with the Securities and Exchange Commission.

Bastion Funding IV, LLC is the administrative agent.

The minimum utilization rates are $50 million at close, $75 million at Dec. 31 and $80 million at March 31, 2023 and therafter.

Interest is at SOFR plus 1,150 basis points.

The advance rate under the facility is equal to 75% of the available receivable balance.

Sezzle Funding SPE II Parent, LLC, a wholly owned subsidiary, is serving as guarantor.

Half of the committed facility amount was from Bastion Funding. The other half came from Kennedy Lewis Capital Partners Master Fund II LP (20.6%) and Kennedy Lewis Capital Partners Master Fund III LP (29.4%).

The lenders were issued warrants to purchase up to 2,075,064 shares of the company’s common stock, exercisable until Oct. 14, 2029, at an exercise price of A$0.49 per share.

Proceeds were used to repay an existing $64.3 million revolving facility with Goldman Sachs Bank USA as administrative agent.

Sezzle is a Minneapolis, Minn.-based provider of an alternative payment platform that offers interest-free installment plans at selected online stores.

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