LendingPoint again upsizes its mezzanine financing, bringing it to more than $67.5 million
Co-investors join Paragon Outcomes Management-led facility. Deal is second facility upsizing in seven months for consumer lending platform
LendingPoint, the consumer lending platform, announced it closed an increase of its mezzanine financing, bringing the total of the facility to $67.5 million. A Paragon co-investor joined the facility as a lender.
Paragon Outcomes Management LLC led the deal and participated in the upsizing. Paragon and LendingPoint continue to build upon their successful relationship which started with their first mezzanine credit facility in January 2017 of just $20 million, which was upsized in August 2017 and in June 2018, and now has been upsized again to $67.5 million.
The credit facility provides advance rate enhancements for more efficient equity usage while also providing swingline support.
Today’s announcement is the latest in a string of financing transactions LendingPoint has closed in the past 15 months. The company secured an up to $500 million Senior Credit Facility in August 2017 and an up to $600 million Senior Credit Facility in May 2018, both arranged by Guggenheim Securities.
“Paragon Outcomes continues to provide outstanding support for the growth of the LendingPoint platform and balance sheet,” said Tom Burnside, LendingPoint co-founder and CEO. “Their support enables us to continue to build our high performing balance sheet and fuels our march towards profitability quarter. To have companies like Paragon Outcomes want to be part of our future is a strong wind at our back.”
The upsized mezzanine allows LendingPoint to more efficiently manage its equity by warehouse financing its originations before selling them into its Senior Credit Facilities. This helps optimize line utilization and portfolio balancing between the Senior Credit Facilities.
“At the risk of becoming repetitious, we continue to be impressed with the performance of the LendingPoint team,” said Frank Tripoli, Managing Partner and Chief Investment Officer. “They pride themselves on their credit risk management, and everything we have seen them do continues to validate that pride. We at Paragon Outcomes look forward to LendingPoint’s continued success and being a part of the LendingPoint story as it unfolds.”
LendingPoint uses proprietary risk models to allow it to paint more complete financial pictures of customers and approve loans for people who otherwise may be overlooked by traditional FICO results. While the company lends to individuals across the credit-score spectrum, from 580 to 850, its ability to lend successfully to NearPrime borrowers, those with FICO scores below 700, distinguishes it among FinTech lenders. LendingPoint’s platform provides both online personal loans as well as point-of-sale loans via retailers and service providers through the LendingPoint Merchant Solutions platform.
About Paragon Outcomes Management LLC
Founded in 2009, Paragon Outcomes Management LLC is a New York City-based SEC-registered private investment firm.
Paragon invests across the capital structure emphasizing capital preservation and cash yield. Focused on real asset and credit-oriented opportunities, Paragon partners with competitively advantaged and established management teams. The permanent nature of Paragon’s capital provides for a duration-agnostic approach to underwriting and structuring, with investment horizons of 1 to 10 years. For more information, visit https://www.paragonoutcomes.com.
LendingPoint is a FinTech lending platform providing direct to consumer loans as well as providing product and service financing at the point of sale. The company is creating a better lending and borrowing experience by looking for more reasons to say “yes” — helping consumers across the credit spectrum unlock access to affordable loans and live better financial lives. Its LendingPoint Merchant Solutions platform provides merchants, service providers and medical institutions a fully integrated, one-stop retail financing in-a-box solution to convert more customers at the point of sale.
LendingPoint was named in 2018 one of the nation’s best consumer loan companies by U.S. News & World Report, one of the Best Personal Loans by NerdWallet, the fastest-growing private company in metro Atlanta by the Atlanta Business Chronicle, one of the GA Fast 40 by the Atlanta Chapter of The ACG, and one of the Top Workplaces by the Atlanta Journal-Constitution. It is a privately held company headquartered in Kennesaw, Ga. with offices in San Diego. For more information, visit https://www.lendingpoint.com.
FICO is a trademark of Fair Isaacs Corporation.