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Oportun closes $150 million four-year term loan via Neuberger funds
By Marisa Wong
Los Angeles, Sept. 15 – Oportun Financial Corp. announced it closed a $150 million senior secured term loan from funds managed or sub-advised by Neuberger Berman Specialty Finance, according to a press release.
Wilmington Trust, NA is administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.
Loans are scheduled to mature on Sept. 14, 2026 and are not subject to amortization. Some prepayments are subject to a prepayment premium.
Loans bear interest at one-month term SOFR plus 900 basis points.
The obligations under the credit agreement are secured by the assets of the company and some of its subsidiaries guaranteeing the loans, including pledges of the equity interests of subsidiaries that are directly or indirectly owned by the company.
The credit agreement contains financial covenants requiring the maintenance of minimum liquidity of $50 million (with a minimum of $40 million held in accounts subject to a perfected security interest) and a minimum asset coverage ratio of 1.50 to 1.00.
The credit agreement also provides that the lenders may require the company to borrow additional loans, at such time that the asset coverage ratio would be at least 2.00 to 1.00 on a pro forma basis, for the purpose of redeeming in full the asset-backed notes and asset-backed residual certificates issued by Oportun RF, LLC under an indenture dated Dec. 20, 2021.
Jefferies LLC acted as financial adviser and arranger.
Orrick, Herrington & Sutcliffe LLP served as legal adviser to the company.
Oportun is an A.I.-powered digital banking business based in San Carlos, Calif.
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