On Deck Capital, Inc. (NYSE:ONDK) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement.
Credit Agreement Amendment
On December 17, 2018, Receivable Assets of OnDeck, LLC (“RAOD”), a wholly-owned subsidiary of On Deck Capital, Inc. (the “Company”), amended and restated its existing $119.7 million asset-backed revolving debt facility (the “SunTrust Facility”) as described below.
On that date, RAOD entered into the Fourth Amended and Restated Credit Agreement (the “Fourth A&R Credit Agreement”) with the Lenders party thereto from time to time, SunTrust Bank, as Administrative Agent, and Wells Fargo Bank, N.A., as Paying Agent and as Collateral Agent for the Secured Parties. The Fourth A&R Credit Agreement amends and restates the Third Amended and Restated Credit Agreement, as previously amended among the same parties on December 15, 2017 (the “Third A&R Credit Agreement”), which was filed as Exhibit 10.20 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
The Fourth A&R Credit Agreement amends the Third A&R Credit Agreement to provide for:
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a twenty-four month extension of the revolving commitment period during which RAOD may utilize funding capacity under the SunTrust Facility to December 17, 2020; |
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an extension of the maturity date in respect of the $100 million Class A revolving loans from December 31, 2018 to no later than September 17, 2021; |
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an extension of the maturity date in respect of the $19.7 million Class B revolving loans from December 31, 2018 to December 17, 2019; and |
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certain favorable changes to portfolio performance covenants, and various related technical, definitional, conforming and other changes. |
The weighted average variable interest rate under the SunTrust Facility decreased from 1 Month LIBOR + 3.50% to 1 Month LIBOR + 2.45% in each case assuming the Class A loans and the Class B loans are drawn on a pro rata basis.The variable interest under the SunTrust Facility will decrease further if the Class B revolving commitment’s maturity date is not extended beyond December 2019.
The foregoing description of the Fourth A&R Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Fourth A&R Credit Agreement, which will be filed as an exhibit to the Company’s Annual Report on Form 10-K for the year ending December 31, 2018.
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Item 1.01 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
About On Deck Capital, Inc. (NYSE:ONDK)
On Deck Capital, Inc. offers an online platform for small business lending. The Company’s platform aggregates and analyzes data points from disparate data sources to assess the creditworthiness of small businesses. Small businesses apply for a term loan or line of credit on the Company’s Website, and using its OnDeck Score, the Company makes a funding decision and transfers the funds. It offers a financing solution for small businesses, including short-term loans of over 10 months and long-term loans of over 40 months, and lines of credit. The Company’s integrated platform includes the Company’s Website, which allows small businesses to apply for a loan, round the clock; data and analytics engine, which analyzes data attributes from disparate sources to assess the real-time creditworthiness of a small business; the technology, which offers funding of loans, and daily and weekly collections, and ongoing servicing system.
