DAVEW - Dave Amends Credit Facility to Increase Capacity and Advance Rate Reduce Cost of Funds and Extend Maturity | Benzinga
LOS ANGELES, Sept. 18, 2023 (GLOBE NEWSWIRE) -- Dave Inc. ("Dave" or the "Company") (NASDAQ:DAVE), one of the nation's leading neobanks, has amended its existing Delayed Draw Senior Secured Loan Facility (the "Credit Facility") with Victory Park Capital Advisors, LLC ("VPC"), effective September 13, 2023.
The amendment to the Credit Facility accomplishes the following:
- Increases the total size by $50 million to $150 million;
- Increases the advance rate by over 800 basis points based on the $75 million outstanding balance on the Credit Facility as of June 30, 2023;
- Reduces cost of funds by nearly 200 basis points based on the outstanding balance as of June 30, 2023; and
- Extends the maturity by approximately two years to December 15, 2026.
"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," said Jason Wilk, Founder and CEO of Dave. "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."
"We are proud of our long-standing relationship with Dave and look forward to continuing our partnership with the ...