Loan & DebtMay 12, 2026, 06:07 AM
Sezzle Secures $300M Credit Facility, Lowers Cost of Capital
AI Summary
Sezzle Inc. announced a new $300 million senior, secured, asset-based revolving credit facility, with an option to increase by $75 million, maturing on May 7, 2029. This new facility, provided by Mesirow Alternative Credit, doubles the company's previous committed capacity and significantly lowers its cost of capital by reducing the interest rate spread by nearly 290 basis points. The terms also include an increased advance rate and a lower minimum utilization requirement, enhancing the company's financial flexibility for continued growth. The Limited Guaranty was also amended to include new restrictions on payments.
Key Highlights
- Sezzle secured a new $300 million revolving credit facility, doubling its original $150 million committed facility.
- The facility includes an option to increase borrowing capacity by an additional $75 million.
- The maturity date for the credit facility is May 7, 2029.
- Interest rate is 3-month Term SOFR plus 3.86%, with a 2.00% SOFR floor.
- This represents a reduction of nearly 290 basis points from the prior facility's spread of 6.75%.
- The advance rate increased to up to 92.5% of eligible receivables, up from 90.0% previously.
- Minimum utilization requirement was reduced to $50 million from $60 million.
- The Limited Guaranty was amended, capping restricted payments at $75 million plus a percentage of net income/loss.
Price Impact
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