Dave, commonly referred to as Dave and recognised as a front-runner among the nation’s neobanks, recently made significant modifications to its pre-existing Delayed Draw Senior Secured Loan Facility.
The revisions to the Credit Facility were made in collaboration with Victory Park Capital Advisors, LLC (VPC) and were put into action as of September 13, 2023.
This adjustment to the Credit Facility has yielded several prominent changes:
- The entire size has seen a rise by $50m, pushing it to a whopping $150m.
- There’s been an escalation in the advance rate by more than 800 basis points. This is grounded on the $75m outstanding balance linked to the Credit Facility as of June 30, 2023.
- A nearly 200 basis point drop in the cost of funds, determined by the outstanding balance dated June 30, 2023.
- The maturity period has been extended roughly by two years, moving the date to December 15, 2026.
Dave’s Founder and CEO Jason Wilk commented on this development, “This amendment to our credit facility provides Dave with more leverage, more capacity, and more term at a lower cost which will further support our growth objectives as well as our liquidity position.
“In light of the higher interest rate environment and tighter capital markets conditions, securing this amendment to the credit facility speaks volumes about the strength of our business and unit economics. I want to thank VPC for their long-term partnership and for providing us with additional capital to continue serving the banking needs of our growing member base.”
Echoing the sentiment of strong collaboration, Jason Brown, a Partner at VPC, added, “We are proud of our long-standing relationship with Dave and look forward to continuing our partnership with the extension of this credit facility.”
As a dominant U.S. neobank, Dave stands tall as a FinTech innovator catering to the vast American population. The company leverages avant-garde technologies, ensuring unparalleled banking services that challenge the conventional, more expensive options. Affiliating with Evolve Bank & Trust (a proud member of FDIC), Dave also ensures its stakeholders stay updated through investors.dave.com and promotes its offerings via @davebanking on Twitter.
Having its roots since 2007, VPC emerges as an SEC-registered prominent credit manager. Strategically headquartered in Chicago, Illinois, and with expansive resources scattered in locations like New York, Los Angeles, San Francisco, and London, the firm specialises in designing custom financing remedies. With a penchant for backing businesses showcasing robust corporate governance and promising growth narratives, VPC’s investments span both budding and well-established businesses globally.
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