OnDeck®, a provider of online lending for small business, announced the closing of a $175 million asset-backed revolving credit facility consisting of funds provided by Liberty Mutual Insurance Company and certain of its affiliates, as well as funds managed by affiliates of Ares Management L.P. The new facility will be utilized to finance OnDeck's line of credit portfolio and may also be used to finance the company's term loans.

"I'm excited to announce yet another step forward in OnDeck's funding strategy," said Ken Brause, Chief Financial Officer, OnDeck. "We are pleased to be working again with Ares and we welcome Liberty Mutual to our esteemed group of funding providers. This new facility adds additional funding flexibility while reducing costs, enabling us to continue providing financing that our small businesses customers need to succeed and grow."

"During the first half of 2018, OnDeck secured over $400 million of new funding capacity while lowering borrowing costs and introducing longer-term funding commitments," said Ron Elimelekh, Head of Capital Markets, OnDeck. "This transaction demonstrates similar success and is a further testament to the strength of OnDeck's business model. Notably, proceeds from this new facility were utilized to prepay in full an existing facility financing our lines of credit, resulting in a 425 basis point improvement in cost."

These transactions were included in the financial guidance provided by OnDeck on August 7, 2018.