Sezzle Inc., a purpose-driven digital payment platform based in Minneapolis, MN, announced today the securing of a new 0 million receivables funding facility with an affiliate of Bastion Management II LLC. Bastion will serve as the Administrative Agent for the lenders, replacing the previous 0 million facility established in October 2022 with Bastion and affiliates.
This new facility not only increases the size of funding but also significantly lowers the Company’s borrowing costs. The interest rate on the new facility will be SOFR (Secured Overnight Financing Rate) plus 6.75%, a considerable decrease from the previous rate of SOFR plus 11.50%. The additional funding will support Sezzle’s growth in the United States and Canadian markets, providing resources to scale operations and pursue strategic initiatives.
Karen Hartje, Sezzle’s Chief Financial Officer, expressed excitement about extending the lending partnership with Bastion, stating that the larger and lower-cost facility will enhance the funding of new strategic initiatives and support profitable growth. The company looks forward to the potential that this extended partnership brings to its future.
Key terms of the facility include a size of 0 million with a million accordion, a term of 3 years, and an interest rate of 3-month Term SOFR + 6.75%. Other terms include an advance rate of 85% – 90% of eligible originations, a minimum utilization of million throughout the facility’s life, and typical covenants, representations, and reporting obligations.
For more information about Sezzle Inc. and its mission to financially empower the next generation through interest-free installment plans, visit their website at [sezzle.com](https://www.globenewswire.com/Tracker?data=lwLJgruFvfi-nnNIqIjd87rbnAL-sXWjezw5UxJHE-AOsX_SdmGtnd_hpfTm0bkODzmN7BYS6CL2rUu1_CCnWA==).
