NEW YORK, May 25, 2017 /PRNewswire/ -- OnDeck® (NYSE:ONDK), the leader in online lending for small business, announced today that it had extended its current asset-backed revolving credit facility with SunTrust Bank.
As a result of the transaction, OnDeck extended the maturity date of its $100 million credit facility with SunTrust Bank to November 2018 and decreased funding cost by 50 basis points.
"This transaction exemplifies our commitment to our relationship with OnDeck," said Tarun Mehta, Group Head for Financial Institutions Investment Banking, SunTrust Robinson Humphrey. "OnDeck is a leading provider of innovative financing solutions to the small business community enabling small businesses to grow, and we are pleased to support the OnDeck team in this important endeavor."
Loans will continue to be made to Receivable Assets of OnDeck, LLC, or RAOD, a wholly-owned subsidiary of OnDeck, to finance RAOD's purchase of small business loans from OnDeck. The revolving pool of small business loans purchased by RAOD serves as collateral under the SunTrust facility. OnDeck is acting as the servicer for those small business loans.
"In the first months of 2017, OnDeck has demonstrated its ability to execute on its financing strategy by extending debt maturities and creating additional funding capacity to pave the way for future loan growth and this transaction is yet another example," said Howard Katzenberg, Chief Financial Officer, OnDeck. "SunTrust, a leading national financial institution, has been, and will now continue to be, our valued partner in support of our mission to empower small businesses to grow into thriving enterprises through OnDeck's lending technology and innovation."
Mr. Katzenberg further noted "We believe that this transaction, along with the recent closing of a Aus$22.5M credit facility to finance small business loans originated by our Australian subsidiary, further exemplifies the strength of OnDeck's capital position and liquidity outlook."
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.
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 regarding the extension of debt maturities, the availability of additional funding capacity and OnDeck's liquidity outlook, all of which are dependent upon compliance with the borrowing and other conditions of the amended facility and other debt facilities and market conditions and statements regarding OnDeck's business plans, objectives and expected future loan growth, which are all subject to material uncertainties including credit risks, pricing risks and economic conditions. 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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SOURCE On Deck Capital, Inc.