Loan Assets of OnDeck, LLC (LAOD), a wholly-owned subsidiary of On Deck Capital, Inc., established a new $100 million asset-backed revolving debt facility with Pioneers Gate LLC, as a Lender, the other Lenders party thereto from time to time, 20 Gates Management LLC, as Administrative Agent for the Class A Lenders, and Deutsche Bank Trust Company Americas, as Paying Agent and Collateral Agent for the Secured Parties. 

The company may now obtain funding (subject to customary borrowing conditions) through the 20 Gates Facility to finance certain of the company’s term loans and line of credit loans to its small business customers.

Under the 20 Gates Facility, the Lenders party thereto make loans to LAOD, the proceeds of which are used to finance LAOD’s purchase of Loans from the Company in a transaction structured to be bankruptcy remote. The revolving pool of Loans purchased by LAOD serves as collateral for the loans made to LAOD under the 20 Gates Facility. LAOD is required to repay the borrowings from collections received on the Loans.

Under the 20 Gates Facility, LAOD can voluntarily repay (subject to certain minimum utilization requirements) and re-borrow principal amounts up to the aggregate commitment amount subject to satisfaction of certain borrowing conditions.