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TORONTO, April 28, 2025 /CNW/ - Propel Holdings Inc. ("Propel") (TSX: PRL), the fintech facilitating access to credit for underserved consumers, announced an amendment to and upsize of $70 million to $400 million to its existing syndicated credit facility for the CreditFresh line of business (the "CreditFresh credit facility"). Furthermore, Propel announced a refinancing of its credit facility for the MoneyKey line of business (the "MoneyKey credit facility"). All amounts are expressed in U.S. dollars.
CreditFresh Credit Facility
With the amendment, the CreditFresh credit facility will bear interest at an interest rate equal to the Secured Overnight Financing Rate ("SOFR") plus approximately 620 basis points per annum. This is a reduction from the prior interest rate of SOFR plus 750 basis points per annum. With the upsize, the total commitment for the CreditFresh credit facility is $400 million.
The CreditFresh credit facility continues to be led by Mesirow Alternative Credit (formerly Bastion Management) and affiliates thereof and Hudson Cove Capital Management, LLC and affiliates thereof ("Hudson Cove"). The syndicate also includes the addition of a large FDIC insured bank.
MoneyKey Credit Facility
Under the terms of the new credit agreement, the MoneyKey credit facility will bear interest at an interest rate equal to SOFR plus approximately 425 basis points per annum. This is a reduction from the prior MoneyKey credit facility interest rate of SOFR plus 1020 basis points per annum. The MoneyKey credit facility total commitment is $15 million and will be solely led by Veritex Community Bank ("Veritex").
Commentary
As reported in its Q4 and Full Year 2024 results, Propel's US loan portfolio, including CreditFresh and MoneyKey, continues to experience strong growth driven by the expansion of its bank partnerships, the delivery of best-in-class products and the growing demand from the underserved market in the US. With the combined amendment and refinancing, Propel's cost of capital will be lowered by approximately 150 basis points per annum1.
"Looking ahead, we see opportunity. The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets. Admist the economic uncertainty, the continued support from large, institutional lenders, such as Veritex, Mesirow Alternative Credit and Hudson Cove, and the addition of a new large bank to the syndicate, is a testament to Propel's demonstrated performance and growth outlook. Propel delivered record performance in 2024, and there is still so much growth ahead of us on our journey to become a global leader in providing credit for underserved consumers," said Clive Kinross, Propel's Chief Executive Officer.