The facility, which includes a USD 255 million term loan and a USD 25 million revolver, is intended to provide the company with the necessary capital and liquidity to facilitate its future growth initiatives. Noteworthy participants in this arrangement include Funds and Accounts managed by BlackRock US Private Capital, UBS O’Connor, JPMorgan Chase, Valley Bank, and Israel Discount Bank.
In the official press release, representatives from Pagaya remarked on the significance of the credit facility, highlighting it as a testament to the confidence and backing received from major financial entities. BlackRock, in particular, led the initiative, underscoring their belief in Pagaya's business model.
Representatives from BlackRock expressed satisfaction in partnering with Pagaya and voiced admiration for the company's distinctive business approach and financial strategy. In turn, Pagaya officials talked about the capital commitment as indicative of the company's ability to tap into diverse capital sources, thereby improving financial flexibility and reinforcing business operations.
The company has pre-announced robust full-year 2023 financial performance, with notable figures such as Network Volume exceeding USD 8.2 billion and Adjusted EBITDA surpassing USD 75 million according to the official press release. The proceeds from the credit facility will primarily be allocated towards repaying outstanding borrowings from previous facilities, investing in product innovation, and expanding the network through collaborations with both existing and new lending and investor partners.
Pagaya Technologies specialises in providing comprehensive consumer credit and residential real estate solutions using machine learning and AI-driven methodologies. With offices in New York and Tel Aviv, Pagaya aims to democratise access to financial products and services on a broader scale.
In December 2023, calcalistech.com reported on a partnership between Pagaya and auto finance firm Exeter Finance, which intended to use the fintech firm's credit-decisioning product across its national network of auto dealers.
According to the same source, financial companies including major banks and fintechs have increased the usage of AI in their operations, with companies such as Symphony, which counts Goldman Sachs and JPMorgan among its clients, teaming up with Google to ramp up its voice analytics offerings to investment firms.
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