NextPlay Technologies, a digital native ecosystem for finance, digital advertisers, and video gamers, announced that NextBank International, Inc. (“NextBank”), the international banking unit of NextPlay’s fintech division, has signed a Loan and Security Agreement with Savi Capital Partners, a Delaware Limited Liability Company, for a $200,000,000 revolving line of credit facility with maturity set for May 31, 2027.
Todd Bonner, chairman of the board of directors of NextPlay Technologies and head of the company’s fintech division, stated: "We are pleased to complete this credit facility with Savi Capital, which illustrates our ability to access alternative forms of capital, providing us with further financial flexibility to grow NextBank’s business lines. We remain committed to scaling our online banking, growing our customer base and footprint, and expanding our loan processing and servicing businesses. We are executing against our strategic objectives."
Under the terms of the agreement, maximum loan amounts available for NextBank draw down and use are:
(a) from November 15, 2022, through December 14, 2022, $30,000,000
(b) from December 15, 2022, through January 14, 2023, $70,000,000
(c) from January 15, 2023, through February 14, 2023, $100,000,000
(d) from February 15, 2023, through March 14, 2023, $150,000,000
(e) from March 15, 2023, through Maturity May 31, 2027, up to the full commitment amount of $200,000,000
Proceeds drawn from the revolving line of credit facility by NextBank will be used to fund loans secured by domestic US commercial real estate properties in accordance with underwriting guidelines established by NextBank. These loans will generate interest spread and fee income, increasing the bank’s loan portfolio, and are expected to favorably impact revenues and cashflows at the bank.
Nithinan Boonyawattanapisut, NextPlay’s Principal Executive Officer, added: “We are appreciative that Savi Capital Partners selected NextBank as a partner and extended the ability of the bank to greatly expand and diversify its loan portfolio. NextBank is seeing considerable growth in its deposit portfolio, and I expect that to accelerate in terms of absolute dollars. The Bank has a backlog of corporate depositors in the 'Know Your Customer' and 'Anti-Money Laundering' Compliance Review process for onboarding. This $200 million line of credit, combined with NextBank’s growth in customer deposits, should have a material impact on the bank’s yielding asset portfolio over the next three quarters. We are targeting between US $100 million and $150 million in deposits and US $200 million in credit availability by the end of the company’s fiscal 4Q, which, combined, should result in a profitable operation overall. This growth and outlook are attracting investors and other strategic partners to NextPlay’s fintech division, and we are actively vetting partners and investors.
“Additionally, we plan to deploy NextBank’s B to C service and begin global marketing for that in the spring of 2023.
“I would also like to recognize our NextFintech division executive team navigating a way to grow NextPlay’s portfolio during this difficult market, better vectoring the company to achieve profitability.”