Pagaya Technologies has significantly expanded its revolving credit facility, boosting it to $132m from the previous $58m agreement.
The development more than doubles its existing facility and comes with a considerable reduction in financing costs.
The revised structure lowers the company’s debt burden by cutting the interest rate by 400 basis points, reducing borrowing costs from SOFR+750 to SOFR+350. This marks a nearly 35% decrease, bringing most of the firm’s corporate borrowings down to or below its high-yield bond coupon of 8.875%.
The expanded facility is supported by new banking partners Citizens, TD Bank, Wells Fargo and Texas Capital Bank. Existing lenders such as Bank of Montreal, Valley Bank, CIBC and Israel Discount Bank have also increased their commitments, highlighting strong institutional confidence in the company.
Executives at Pagaya said the larger credit line will provide additional stability and liquidity, helping the business remain insulated from volatility while supporting its growth plans. The strengthened balance sheet will allow the company to continue operating efficiently across different market cycles.
Pagaya chief financial officer Evangelos Perros said, “This expanded facility is another important milestone in fortifying our balance sheet and building a durable capital structure that positions Pagaya to thrive in all market cycles.
“The addition of several new top-tier banks, alongside increased commitments from our existing lenders, underscores the confidence leading financial institutions have in our business model, profitability, and long-term outlook. With this expanded facility in place, we are well-positioned to operate with even greater financial flexibility and efficiency.”
Pagaya uses artificial intelligence and machine learning to create financial products that increase access to credit and real estate solutions.
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