Issuers that Don’t Fit the Broadly Syndicated Loan Market Can Still Access Non-Dilutive Capital through Private Debt

Actionable Ideas for Companies and Sponsors

Issuers that Don’t Fit the Broadly Syndicated Loan Market Can Still Access Non-Dilutive Capital through Private Debt

For smaller deals or challenged credits that would not be well received by the syndicated loan market, Jefferies can arrange unrated club deals with a more tailored credit facility to fit an issuer’s needs. Recent illustrative examples include:

  1. Jefferies closed a 4-year, $150 million senior secured term loan for Oportun Financial to fund cash to the balance sheet for growth in their consumer lending business. Oportun Financial (NASDAQ: OPRT) is a leading financial technology company and digital banking platform that aims to provide inclusive, affordable financial services that empower its members to build a better future. This financing was the company’s first corporate-level debt issuance and sits behind much of the company’s existing asset-level securitizations.
  2. Jefferies closed a $225 million Senior Secured First Lien Credit Facility for Achieve, f.k.a. Freedom Financial, to provide growth capital to support the Company’s near-term transformation plan. Achieve is a leading digital personal finance company whose products and solutions help everyday people get on, and stay on, the path to a better financial future, with innovative technology and personalized support. Jefferies ran a highly customized process amid volatile market conditions and an unfavorable macroeconomic outlook. After marketing the transaction to a select group of targeted investors, we were able to achieve a successful execution with terms to the company’s benefit.