Business
Canada's Leading Online Lender, Mogo, Secures New Credit Facility of up to $200 million from Fortress
New facility allows Mogo to accelerate the expansion of its consumer loan products to all...
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[{"type":"text","content":"\n\nNew facility allows Mogo to accelerate the expansion of its consumer loan products to all Canadians \n\n\n\nVANCOUVER, Sept. 2, 2015 /CNW/ - Mogo Finance Technology Inc. (TSX: GO), one of Canada's fastest growing financial technology companies, today announced it has finalized the previously disclosed agreement with Fortress Credit Co LLC (\"Fortress\"), part of Fortress Investment Group LLC's (NYSE: FIG) Credit Funds business (\"Fortress Credit\"), on a new expandable revolving credit facility of up to $200 million. The new credit facility will be used to finance the continued expansion of Mogo's consumer installment loans of up to $35,000 (MogoLiquid).  The announcement comes shortly after Mogo reported its second quarter 2015 results with loan originations up 137% and revenue increasing by 122% compared with the second quarter of 2014. \n\n\"The new facility substantially increases the capital available to support the continued growth of our installment loans, while significantly lowering our cost of capital, both of which are key strategic objectives,\" said Greg Feller, President & CFO of Mogo. \"With the two credit facilities we now have in place, we have up to $250 million in available loan capital to grow our portfolio. We are very pleased to have the continued strong support of Fortress Credit, one of the largest and most successful consumer credit investors in the world.\" \n\n\"With Mogo's disruptive brand, product and technology solution, we believe they are uniquely positioned to offer Canadians increased savings, transparency and a vastly superior customer experience compared with traditional financial institutions,\" said Dominick Ruggiero, a managing director of Fortress Credit.  \"We are pleased to be expanding our relationship with them as they continue their strong growth and pursue their broader vision of building a fully digital experience and brand focused on millennials.\"\n\n\"One of the unique things about our solution is that we offer consumers across the full credit spectrum the opportunity to lower their cost of credit and get out of debt faster compared to their existing alternatives,\" said Dave Feller, Mogo's founder & CEO. \"Given its attractive rates and simplicity, MogoLiquid is particularly appealing to the approximately 17 million prime consumers in Canada  ...