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Mogo Secures New Credit Facility of up to $40 million from Fortress
Mogo Secures New Credit Facility of up to $40 million from Fortress Canada NewsWir...
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[{"type":"text","content":"\n\n\n\nMogo Secures New Credit Facility of up to $40 million from Fortress\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Sept. 25, 2017\n\n\n\nLowers interest rate, Increases available loan capital, extends maturity\n\n\n\nVANCOUVER, Sept. 25, 2017 /CNW/ - Mogo Finance Technology Inc. (TSX: MOGO; OTCQX: MOGOF) (\"Mogo\"), a leading Canadian digital finance company, today announced that it has finalized a new senior secured credit facility of up to $40 million (\"Credit Facility – Other\") from funds managed by affiliates of Fortress Investment Group LLC (NYSE: FIG) (\"Fortress\"). The new credit facility will be used to repay and replace Mogo's existing $30 million facility with Fortress (\"Credit Facility – ST\"). This new credit facility, which has a lower effective interest rate and extends the maturity date by two years to July 2, 2020, will primarily be used to fund the Company's high yielding line of credit products. The new facility is in addition to the Company's existing $50 million Fortress facility (Credit Facility – Liquid), which has an initial interest rate of 9.5% and can be expanded, under certain conditions, up to $200 million.\n\n\"Fortress continues to be an excellent partner as we grow our high yielding loan portfolio alongside the ramp of our new fee-based products,\" said Greg Feller, President & CFO of Mogo. \"This new facility increases our available loan capital on more favourable terms and extends the maturities of all of our funding facilities to 2020.\" \n\n\"We are excited to continue to expand our relationship with Mogo, which we see as one of the most innovative financial technology companies in North America,\" said Dominick Ruggiero, Managing Director at Fortress and co-Chief Investment Officer of the Fortress Secured Lending Fund. \n\nThe new facility will have an effective interest rate of 14.5% (based on an initial credit facility interest rate of an adjusted LIBOR plus 12.5% with a LIBOR floor of 2%). If the new facility is increased b...