Pagaya Technologies, a global technology company delivering AI-driven product solutions for the financial ecosystem, announced the closing of a credit facility with participation from Funds and Accounts managed by BlackRock, UBS O’Connor, JPMorgan Chase, Valley Bank, and Israel Discount Bank.

The facility, which consists of a $255 million term loan and a $25 million revolver, provides the capital and liquidity needed to support the Company’s future growth, extends its corporate debt maturity to 2029 and validates investors’ confidence in Pagaya’s business model and financial strength.

“This credit facility, led by BlackRock, showcases the confidence and support from some of the largest and most sophisticated financial institutions in the world, as we transform the consumer finance ecosystem in the next phase of our growth journey,”

said Gal Krubiner, Co-Founder and CEO of Pagaya.

In the last four months of 2023, the Company secured four new lending partners, including a top bank and top auto captive, which are expected to drive a transformational step-change in Pagaya’s network expansion. In addition, the Company recently pre-announced strong full-year 2023 financial performance, with Network Volume exceeding $8.2 billion and Adjusted EBITDA exceeding $75 million, implying annualized run-rate Adjusted EBITDA of over $110 million based on 4Q2023.

Proceeds from the facility will be used to pay off outstanding borrowings from the Company’s previous facility, invest in product innovation, and grow its network with both existing and new lending and investor partners.

Jefferies served as Sole Arranger on the transaction.

Featured image credit: Gal Krubiner, Co-Founder and CEO of Pagaya