NEW YORK, March 22, 2017 /PRNewswire/ -- OnDeck® (NYSE: ONDK), the leader in online lending for small business, announced today that it had amended its asset-backed revolving credit facility with Deutsche Bank to extend the facility's maturity date to March 2019 and to increase the facility's borrowing capacity by approximately $52 million to a total of up to approximately $214 million.
"We are pleased to provide OnDeck with an extension and upsize of this credit facility, which will help OnDeck to continue providing financing solutions to the small business community," said Randal Johnson, director at Deutsche Bank.
Under the facility, loans will continue to be made to OnDeck Account Receivables Trust 2013-1 LLC, or ODART, a wholly owned subsidiary of OnDeck, to finance ODART's purchase of small business loans from OnDeck. The revolving pool of small business loans purchased by ODART serves as collateral under the facility. OnDeck is acting as the servicer for such small business loans. The ratings previously assigned to the Class A and Class B Loans under the facility by DBRS, Inc., did not change as a result of the amendment.
"The closing of this transaction reflects a continued ability to execute our financing strategy for 2017, which includes extending debt maturities and creating additional funding capacity for future loan growth," said Howard Katzenberg, chief financial officer, OnDeck. "Deutsche Bank, a leading global financial institution, has been a steadfast partner in supporting OnDeck's mission to power the growth of small business through lending technology and innovation and we are pleased to continue our relationship into 2019."
OnDeck (NYSE: ONDK) is the leader in online small business lending. Since 2007, the Company has powered Main Street's growth through advanced lending technology and a constant dedication to customer service. OnDeck's proprietary credit scoring system – the OnDeck Score® – leverages advanced analytics, enabling OnDeck to make real-time lending decisions and deliver capital to small businesses in as little as 24 hours. OnDeck offers business owners a complete financing solution, including the online lending industry's widest range of term loans and lines of credit. To date, the Company has deployed over $6 billion to more than 60,000 customers in 700 different industries across the United States, Canada and Australia. OnDeck has an A+ rating with the Better Business Bureau.
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Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements include statements about the extension of debt maturities and the availability of additional funding capacity, all of which are dependent upon compliance with the borrowing and other conditions of the amended facility and other debt facilities, as well as information concerning OnDeck's business plans and objectives and financing plans including future loan growth. Forward-looking statements can also be identified by words such as "will," "enables," "expects", "may," "allows," "continues," "believes," "intends," "anticipates," "estimates" or similar expressions. Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on OnDeck's current beliefs, expectations and assumptions regarding the future of its business, anticipated events and trends, the economy and other future conditions. Moreover, OnDeck does not assume responsibility for the accuracy and completeness of forward-looking statements. As such, they are subject to inherent uncertainties, changes in circumstances, known and unknown risks and other factors that are difficult to predict and in many cases outside OnDeck's control.
As a result, you should not rely on any forward-looking statements. OnDeck's expected results may not be achieved, and actual results may differ materially from OnDeck's expectations. Important factors that could cause actual results to differ from OnDeck's forward-looking statements are the risks that OnDeck may not be able to manage its anticipated or actual growth effectively, that its credit models do not adequately identify potential risks, and other risks, including those under the heading "Risk Factors" in OnDeck's Annual Report on Form 10-K for the year ended December 31, 2016 and in other documents that OnDeck files with the Securities and Exchange Commission, or SEC, from time to time which are available on the SEC website at www.sec.gov. OnDeck undertakes no obligation to publicly update any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in OnDeck's expectations, except as required by law.
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