Pagaya Technologies LTD. announced it has amended and expanded its existing revolving credit facility to $132 million, more than doubling the prior $58 million facility. This significant expansion reflects continued momentum across Pagaya’s platform and reinforces its stable, diversified funding position.
The expanded facility substantially reduces Pagaya’s cost of debt capital, lowering the interest rate by nearly 35% from SOFR+750 to SOFR+350. As a result, the cost of substantially all of Pagaya’s corporate borrowings are now at or below the company’s recent high-yield bond coupon of 8.875%.
The strong demand from both new lenders, including Wells Fargo, Citizens, TD Bank, and Texas Capital, as well as increased commitments from existing lenders, underscores leading financial institutions' confidence in Pagaya's business model and profitability. CFO Evangelos Perros stated this provides additional stability and liquidity, positioning Pagaya for greater financial flexibility and efficiency.
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