Pagaya Technologies, a pioneering global technology company leveraging AI-driven solutions, has announced the successful procurement of a $280 million credit facility, signalling a significant milestone in its journey towards transformative growth and innovation. The facility, comprising a $255 million term loan and a $25 million revolver, represents a strategic move to bolster the company’s capital base and liquidity, facilitating its ambitious expansion plans while extending its corporate debt maturity to 2029.
The financing round saw participation from an impressive consortium of financial heavyweights, including funds managed by BlackRock, UBS, JPMorgan Chase, Valley Bank, and Israel Discount Bank. This collaboration underscores the confidence of renowned institutional investors in Pagaya’s business model and financial robustness, validating its position as a trailblazer in reshaping the consumer finance ecosystem through advanced technological solutions.
Gal Krubiner, Co-Founder and CEO of Pagaya, expressed his gratitude for the support and confidence shown by leading financial institutions, particularly highlighting BlackRock’s leadership in spearheading the credit facility. Krubiner emphasised the significance of this milestone in propelling Pagaya into the next phase of its growth journey, reaffirming the company’s commitment to driving innovation and creating new opportunities in the finance sector.
Pagaya’s recent achievements further underline its momentum and market traction. The company secured four new lending partners in the last four months of 2023, including a top bank and top auto captive, poised to catalyse a transformative expansion of Pagaya’s network. Additionally, the company’s pre-announced strong full-year 2023 financial performance, with Network Volume surpassing $8.2 billion and Adjusted EBITDA exceeding $75 million, underscores its resilience and growth trajectory.
Dan Worrell, Managing Director at BlackRock, expressed enthusiasm for the partnership with Pagaya, lauding the company’s innovative business model and financial strategy. Worrell emphasised BlackRock’s confidence in Pagaya’s ability to create value and foster new customer relationships in the evolving financial landscape.
Evangelos Perros, Interim CFO of Pagaya, highlighted the significance of the capital commitment in enhancing the company’s financial flexibility and resilience. The infusion of capital underscores Pagaya’s ability to access diverse funding sources, reinforcing its capacity to pursue further scale and innovation.
The proceeds from the credit facility will be allocated towards retiring outstanding borrowings from Pagaya’s previous facility, driving product innovation, and expanding its network with both existing and new lending and investor partners. With a strengthened financial foundation, Pagaya is poised to accelerate its mission of revolutionising the finance industry through cutting-edge technology and strategic partnerships.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.