Elevate Announces Amended Credit Facilities with Victory Park Capital

FORT WORTH, Texas–(BUSINESS WIRE)–Elevate Credit, Inc. (NYSE:ELVT) (“Elevate” or the “Company”), a leading
tech-enabled provider of innovative and responsible online credit
solutions for non-prime consumers, today announced amendments to the
credit facilities for its four products with Victory Park Capital
(“VPC”), a leading global alternative investment firm. The new
facilities will fund loans originated by Elevate and its bank partners.
This will result in a significantly lower cost of capital for Elevate
and provide over one billion dollars in available capital.

“Our partnership with Victory Park Capital has been an important driver
of our tremendous growth to date. We are proud to continue our
long-standing relationship with VPC with these significantly expanded
and lower-cost financing facilities,” said Ken Rees, Elevate CEO.

“Elevate is filling a critical void in the market by providing
underserved consumers in the U.S. and U.K. with safe and transparent
forms of alternative credit,” said Tom Welch, partner at VPC. “This
latest transaction further solidifies our partnership with Ken and his
team, which now spans over nearly a decade, and we look forward to
Elevate’s continued success.”

Terms for the amended facilities include the following:

  • Pricing is 3-month LIBOR plus 7.50% for all product facilities
    (subordinated debt unchanged) effective February 1, 2019 for the Rise
    and Sunny facilities and effective July 1, 2019 for the Elastic ESPV
    facility
  • Over $1 billion in facilities – $350 million commitment for Rise state
    licensed and Today Card, $150 million for Rise FinWise Bank special
    purpose vehicle (SPV), $350 million for Elastic Republic Bank SPV,
    £100 million for Sunny UK and $35 million for the existing
    subordinated debt
  • 20% revolver in the first quarter of each year for each product
    facility and a 0.25% reduction in cost of funds for each product
    facility in both 2020 and 2021, subject to meeting certain net income
    thresholds
  • Maturity date of January 1, 2024 (except for the $35 million in
    subordinated debt, which continues to have a maturity date of February
    1, 2021)
  • $2.4 million amendment fee in the first quarter of 2019

About Elevate

Elevate (NYSE: ELVT), together with its bank partners, has originated
$6.7 billion in non-prime credit to more than 2.2 million non-prime
consumers to date and has saved its customers more than $4.8 billion
versus the cost of payday loans. Its responsible, tech-enabled online
credit solutions provide immediate relief to customers today and help
them build a brighter financial future. The company is committed to
rewarding borrowers’ good financial behavior with features like interest
rates that can go down over time, free financial training and free
credit monitoring. Elevate’s suite of groundbreaking credit products
includes RISE, Elastic, Sunny and Today Card. For more information,
please visit http://www.elevate.com.

About Victory Park Capital

Victory Park Capital Advisors, LLC (“VPC”) is a privately held,
SEC-registered, global alternative investment firm. VPC provides
opportunistic capital solutions to both emerging and established
businesses with an expertise investing across various sectors where
traditional sources of capital are limited. The firm’s differentiated
offerings leverage an extensive network of industry relationships,
disciplined deal origination, creative financing capabilities and broad
credit structuring and special situations expertise. The firm was
founded in 2007 and is headquartered in Chicago with additional offices
in New York, Los Angeles and San Francisco. For more information, please
visit www.victoryparkcapital.com.

Contacts

Investor Relations:
Solebury Communications
Sloan Bohlen,
(817) 928-1646
investors@elevate.com

or

Media Inquiries:
Vested
Ishviene Arora, (917) 765-8720
elevate@fullyvested.com

Victory Park Capital
Karolina Kmiecik, (312) 240-3367
Karolina.Kmiecik@edelman.com

error: Content is protected !!