Pagaya Technologies Secures $280 Million Credit Facility from Top Global Asset Managers and Financial Institutions
Pagaya Technologies, a global technology company, has announced that it has secured a credit facility worth $280 million from top global asset managers and financial institutions. The credit facility, which includes a $255 million term loan and a $25 million revolver, will provide capital and liquidity to support Pagaya’s future growth and extend its corporate debt maturity to 2029.
According to the press release, BlackRock, UBS O’Connor, JPMorgan Chase, Valley Bank and Israel Discount Bank are among the organizations providing the credit facility. Pagaya co-founder and CEO, Gal Krubiner, expressed his confidence in the support of these financial institutions, stating that the credit facility “showcases the confidence and support from some of the largest and most sophisticated financial institutions in the world.”
Artificial Intelligence-Driven Solutions in the Financial Ecosystem
Pagaya specializes in providing artificial intelligence (AI)-driven product solutions in the financial ecosystem. With machine learning (ML), a vast data network, and sophisticated AI algorithms, the company offers consumer credit and residential real estate solutions. Its proprietary application programming interface (API) and capital solutions seamlessly integrate with partner networks, enhancing user experiences and expanding access to the mainstream economy.
Rapid Expansion and Strong Financial Performance
Pagaya has been rapidly expanding its network, securing four new lending partners in the last four months of 2023, including a top bank and top auto captive. In a recent partnership with automotive FinTech company Westlake Financial, Pagaya partnered with Westlake’s auto dealer partners to provide access to its tech-enabled credit-decisioning product.
In terms of financial performance, Pagaya recently pre-announced full-year 2023 financial performance, with network volume surpassing $8.2 billion and adjusted EBITDA exceeding $75 million. This indicates an annualized run-rate adjusted EBITDA of over $110 million based on the fourth quarter of 2023.
Utilizing Credit Facility to Drive Innovation and Expand Network
The proceeds from the credit facility will be utilized by Pagaya to pay off outstanding borrowings from its previous facility, invest in product innovation, and expand its network with both existing and new lending and investor partners. The credit facility will provide the necessary capital and liquidity to drive innovation and support the company’s future growth.
Pagaya’s differentiated business model, core product offering, and financial strategy have garnered praise from industry experts, with BlackRock’s Managing Director, Dan Worrell, expressing his impression of the company’s ability to “create more financial opportunities and enable new customer relationships.”
Key Takeaways
- Pagaya Technologies has secured a credit facility worth $280 million from leading global asset managers and financial institutions.
- The credit facility will provide capital and liquidity to support Pagaya’s future growth and extend its corporate debt maturity to 2029.
- Pagaya specializes in providing AI-driven product solutions in the financial ecosystem, offering consumer credit and residential real estate solutions.
- The company has recently formed partnerships with top lending partners and achieved strong financial performance in 2023.
- The credit facility proceeds will be used to pay off outstanding borrowings, invest in product innovation, and expand the company’s network with lending and investor partners.
Analyst comment
Positive news: Pagaya Technologies Secures $280 Million Credit Facility from Top Global Asset Managers and Financial Institutions. As an analyst, this news suggests that Pagaya will have the necessary capital and liquidity to support its future growth and extend its debt maturity. This could lead to further product innovation, expansion of its network, and potentially improved financial performance in the coming years.
