OppFi units inks revolver agreement at SOFR plus 750 bps

By Mary-Katherine Stinson

Lexington, Ky., Dec. 20 – OppFi Inc.’s subsidiary Opportunity Financial, LLC and OppFi-LLC’s wholly owned subsidiary Opportunity Funding SPE IX, LLC and certain other subsidiaries entered into a revolving credit agreement for up to $150 million of borrowings at an interest rate equal to SOFR plus 750 basis points, according to an 8-K filing with the Securities and Exchange Commission.

The agreement is subject to a borrowing base and various financial covenants, including minimum tangible net worth, liquidity and a senior debt to equity ratio.

Outstanding obligations under the agreement may be prepaid beginning on Dec. 14, 2023, subject to prepayment premiums. There are mandatory prepayment requirements should the company’s borrowings under the agreement exceed its borrowing base.

The facility matures Dec. 14, 2026.

UMB Bank, NA is the administrative agent and collateral agent.

Castlelake LP is the lender. Affiliates of Hudson Cove Capital Management LLC also participated in the credit facility.

Proceeds will be used to finance receivables growth and repay outstanding borrowings under a revolving credit agreement originally entered on Jan. 23, 2018 and repay and terminate approximately $109 million in outstanding obligations under an Ares SPV III Agreement.

OppFi is a Chicago-based financial technology company.

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