Buy now, pay later (BNPL) platform Sezzle has entered a $100m credit facility agreement with affiliates of Bastion Management II.
This facility will support Sezzle’s business in the US and Canada, and replaces a prior facility with Goldman Sachs Bank USA and Bastion.
Sezzle said these funds provide it with greater flexibility and extends its funding into 2024.
The BNPL company allows consumers to buy products and pay for them over four interest-free payments.
Sezzle chief financial officer Karen Hartje said, “We are excited to continue our relationship with Bastion, as they have been a supportive partner. The new facility positions Sezzle with the necessary liquidity and balance sheet strength to pursue the Company’s growth objectives and achieve profitability.”
Earlier this year, fellow BNPL firm Zip pulled out of a proposed $491m merger with Sezzle. The announcement meant Sezzle’s shares dropped by 30%.
Sezzle received an $11m termination compensation from Zip to support legal, accounting and other costs associated with the transaction.
Zip chair Diane Smith-Ganger said, “We believe that mutually terminating the merger agreement with Sezzle at this time is in the best interests of Zip and its shareholders, and will allow Zip to focus on its strategy and core business in the current environment.”
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