NEW YORK, Aug. 3, 2015 /PRNewswire/ -- OnDeck® (NYSE:
ONDK), a leading platform for small business lending, announced
today that an affiliate of Jefferies Group LLC, the global
investment banking firm, has entered into an amended forward
purchase agreement giving Jefferies the ability to purchase up to
$500 million in small business loans
through OnDeck Marketplace® over the next 12
months.
OnDeck Marketplace is a platform that enables
institutional investors to purchase small business loans originated
by OnDeck.
OnDeck Marketplace has grown substantially since it first
launched in late 2013, making up 34% of OnDeck's term loan
originations during the second quarter of 2015, up from 24% in the
first quarter of 2015.
Jefferies began its relationship with OnDeck Marketplace
in March 2014. Jefferies' interest in
OnDeck Marketplace aligns with the overall growth of the
platform as OnDeck continues gaining scale and diversifying its
funding sources.
"Marketplace allows institutional investors to
participate in the emerging small business loan asset class at
scale," said Howard Katzenberg,
chief financial officer, OnDeck. "The agreement not only
demonstrates Jefferies' interest in Marketplace, but it also
gives them the ability to expand their portfolio and help even more
small businesses get the capital they need to grow."
"We look forward to continuing to work with our client, OnDeck,
and its lending platform to structure and deliver innovative
investment opportunities to our capital markets investor clients,"
said Michael Wade, managing
director, Jefferies.
OnDeck Marketplace participants include institutional
investors, asset managers, hedge funds and business development
companies. To use the platform, each institutional investor opens
its own OnDeck Marketplace account, purchases loans on a
programmatic basis, and then receives daily principal and interest
payments from the loans it owns. OnDeck services the loans
institutions purchase, making the process seamless, transparent and
efficient.
Loans in OnDeck Marketplace are assigned one of six
grades primarily based on their OnDeck Score®, and these
grades set the prices institutional investors pay for individual
loans. These comprehensive metrics allow OnDeck and institutional
investors to better evaluate risk when making small business loan
decisions.
Institutional investors with questions regarding
Marketplace participation
can email marketplace@ondeck.com or
visit www.ondeck.com/marketplace.
About OnDeck
OnDeck (NYSE: ONDK), a leading platform for small business
lending, is committed to increasing Main Street's access to
capital. OnDeck uses advanced lending technology and analytics to
assess creditworthiness based on actual operating performance and
not solely on personal credit. The OnDeck Score®, the
company's proprietary small business credit scoring system,
evaluates thousands of data points to deliver a credit decision
rapidly and accurately. Small businesses can apply for a line of
credit or term loan online in minutes, get a decision immediately
and receive funds in as fast as the same day. OnDeck also partners
with small business service providers, enabling them to connect
their customers to OnDeck financing. OnDeck's diversified loan
funding strategy enables the company to fund small business loans
from various credit facilities, securitization and the OnDeck
Marketplace®, a platform that enables institutional investors
to purchase small business loans originated by OnDeck.
Since 2007, OnDeck has deployed more than $2 billion to more than 700 different industries
in all 50 U.S. states, and also makes small business loans in
Canada. The company has an A+
rating with the Better Business Bureau and operates the website
BusinessLoans.com which provides credit education and information
about small business financing. On December
17, 2014, OnDeck started trading on the New York Stock
Exchange under the ticker ONDK.
About Jefferies
Jefferies, the global investment banking firm focused on serving
clients for over 50 years, is a leader in providing insight,
expertise and execution to investors, companies and governments.
The firm provides a full range of investment banking, sales,
trading, research and strategy across the spectrum of equities,
fixed income and foreign exchange, as well as wealth management, in
the Americas, Europe and
Asia. Jefferies Group LLC is a
wholly-owned subsidiary of Leucadia National Corporation (NYSE:
LUK), a diversified holding company.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and other legal authority. Forward-looking statements can be
identified by words such as "will," "enables," "expects," "allows,"
"continues," "believes," "anticipates," "estimates" or similar
expressions. These include statements regarding the prospects for
OnDeck Marketplace, the expected expansion of OnDeck's
business dealings with affiliates of Jefferies Group LLC pursuant
to the forward purchase agreement, and the possible impact of
Jefferies' interest in the program. Forward-looking
statements are neither historical facts nor assurances of future
performance. They are based only on our current beliefs,
expectations and assumptions regarding the future of our business,
anticipated events and trends, the economy and other future
conditions. As such, they are subject to inherent uncertainties,
risks and changes in circumstances that are difficult to predict
and in many cases outside our control. Therefore, you should not
rely on any of these forward-looking statements. Our expected
results may not be achieved, and actual results may differ
materially from our expectations. Factors that could cause or
contribute to actual results to differing from our forward-looking
statements include risks relating to: institutional investors
(including entities affiliated with Jefferies) not participating,
continuing to participate, or increasing their participation
in OnDeck Marketplace as currently expected,
OnDeck Marketplace failing to provide or continuing to
provide attractive returns to Jefferies' affiliates and other
institutional investors, failure of OnDeck to originate sufficient
qualified small business loans to sell to Jefferies' affiliates and
other institutional investors and other risks, including those
described in our Annual Report on Form 10-K for the year
ended December 31, 2014, and in other documents that we
file with the Securities and Exchange Commission from
time to time which are or will be available on the Commission's
website at www.sec.gov. Except as required by law, we
undertake no duty to update the information in this press
release.
Investor Contact:
Kathryn
Harmon Miller
646.558.7860
kmiller@ondeck.com
Media Contact:
Michael
McGinn
FleishmanHillard
michael.mcginn@fleishman.com
212-453-2046
OnDeck, the OnDeck logo, OnDeck Score and
OnDeck Marketplace are trademarks of On Deck
Capital, Inc.
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SOURCE On Deck Capital, Inc.